Session 2015-16
Other Public Bills before Parliament
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Bank of England and Financial Services Bill [HL]
list of Amendments
to be moved
in committee
The amendments have been marshalled in accordance with the Instruction of 4th November 2015, as follows—
| Clauses 1 to 13 Schedule 1 Clauses 14 to 16 Schedule 2 Clause 17 |
Schedule 3 Clause 18 Schedule 4 Clauses 19 to 30 Title |
[Amendments marked * are new or have been altered]
Before Clause 1
LORD EATWELL
Insert the following new Clause—
(1) For the purpose of this Act, “the Bank” has the same meaning as in section
41 of the Bank of England Act 1998 (general interpretation).
(2) In section 41 of the Bank of England Act 1998—
(a) for “In this Act” substitute “For the purposes of this Act”; and
(b) after “England;” insert “for the purpose of this Act, powers
delegated to “the Bank” may be exercised by, or be limited to, any
or all of—
(i) the staff of the Bank of England,
(ii) the court of directors,
(iii) the committees of the court of directors,
(iv) the Governor,
(v) the Deputy Governors,
(vi) the executive staff; and”.”
Clause 1
LORD SHARKEY
BARONESS KRAMER
Page 1, line 7, at end insert—
“( ) In section 1(2) (court of directors), in paragraph (e) omit “not more than”.”
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
Page 1, line 10, leave out “Treasury” and insert “Chancellor of the Exchequer”
Page 3, line 9, at end insert—
“(8) The Treasury must—
(a) publish in such a manner as it thinks fit the reasons for any
changes to subsection (3), and
(b) lay a copy of the publication provided for by paragraph (a)
before each House of Parliament.”
Clause 3
LORD SHARKEY
BARONESS KRAMER
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
The above-named Lords give notice of their intention to oppose the Question that Clause 3
stand part of the Bill.
Clause 4
LORD SHARKEY
BARONESS KRAMER
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
The above-named Lords give notice of their intention to oppose the Question that Clause 4
stand part of the Bill.
Clause 5
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
Page 4, line 26, leave out subsection (2)
Page 4, line 30, at end insert—
“( ) In subsection (2)(b), for “Treasury” substitute “Chancellor of the
Exchequer”.”
Clause 6
LORD SHARKEY
BARONESS KRAMER
Page 5, line 11, leave out “5” and insert “6”
After Clause 6
BARONESS WORTHINGTON
BARONESS KRAMER
Insert the following new Clause—
After section 9C(3)(c) of the Bank of England Act 1998 (objectives of the
Financial Policy Committee) insert—
“(d) systemic risks to the long-term stability of the UK financial system
attributable to long-term fundamental change, such as climate
change, demographic change, and technological change.””
Clause 9
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
Page 7, line 12, leave out “reasonable”
Page 7, line 14, leave out “reasonably”
Clause 10
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
Page 8, line 12, leave out “reasonable”
Page 8, line 13, leave out “reasonably”
Page 8, line 17, leave out “reasonably”
Clause 11
LORD BICHARD
BARONESS KRAMER
LORD MCFALL OF ALCLUITH
Page 9, line 27, leave out from “section” to end of line 28 and insert “shall not be
construed as entitling the Comptroller to question the merits of the policy
objectives of the Bank, including in relation to monetary policy.”
Page 9, leave out lines 29 and 30
Page 9, line 39, leave out from first “Bank’s” to end of line 40 and insert “policy
objectives, including in relation to monetary policy.”
Page 10, leave out lines 7 to 11
Page 11, leave out lines 21 to 25
LORD HIGGINS
Lord Higgins gives notice of his intention to oppose the Question that Clause 11 stand part
of the Bill.
After Clause 11
LORD SHARKEY
BARONESS KRAMER
Insert the following new Clause—
In Schedule 1ZB to the Financial Services and Markets Act 2000, after
paragraph 9(b), insert “, and
(c) the chief executive of the FCA.””
Clause 12
LORD SHARKEY
BARONESS KRAMER
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
The above-named Lords give notice of their intention to oppose the Question that Clause 12
stand part of the Bill.
Clause 13
LORD SHARKEY
BARONESS KRAMER
The above-named Lords give notice of their intention to oppose the Question that Clause 13
stand part of the Bill.
Clause 14
LORD SHARKEY
BARONESS KRAMER
The above-named Lords give notice of their intention to oppose the Question that Clause 14
stand part of the Bill.
Clause 15
LORD SHARKEY
BARONESS KRAMER
The above-named Lords give notice of their intention to oppose the Question that Clause 15
stand part of the Bill.
After Clause 15
BARONESS KRAMER
LORD TEVERSON
Insert the following new Clause—
(1) The PRA must carry out its functions in a way that it considers will secure
the provision of a “Green Investment Bank” service in the United Kingdom.
(2) The PRA shall by rules specify the purposes that it considers should be
supported in the United Kingdom by the provision of a “Green Investment
Bank” service.
(3) Rules under subsection (2) shall include the following purposes—
(a) the reduction of greenhouse gas emissions;
(b) the advancement of efficiency in the use of natural resources;
(c) the protection or enhancement of the natural environment;
(d) the protection or enhancement of biodiversity; and
(e) the promotion of environmental sustainability.
(4) In subsection (3)(a), “greenhouse gas” has the meaning given by section
92(l) of the Climate Change Act 2008.”
Clause 18
LORD SHARKEY
BARONESS KRAMER
Page 15, line 19, at end insert—
“(2) The terms of the extension under subsection (1) shall not apply to those
persons who fall within the definition of “relevant authorised person” in
section 33 of the Financial Services (Banking Reform) Act 2013.”
Clause 20
LORD BRIDGES OF HEADLEY
Page 17, line 18, leave out paragraph (d)
Page 17, line 22, at end insert—
“( ) In section 204A (meaning of appropriate regulator)—
(a) in subsection (3)(d) for the words from “the authorised person” to
the end substitute “the revised statement of responsibilities is to be
provided to the PRA only;”;
(b) in subsection (3A), after paragraph (b) insert—
“(ba) a requirement under section 62A(2) where the
revised statement of responsibilities is to be
provided to the FCA and the PRA;”.”
Clause 21
LORD SHARKEY
BARONESS KRAMER
Page 17, line 45, leave out paragraph (c)
After Clause 21
LORD SHARKEY
BARONESS KRAMER
Insert the following new Clause—
The Treasury shall require that the FCA amend the rules in its handbook
governing unsolicited marketing so that they apply to debt management
services.”
After Clause 22
BARONESS DRAKE
LORD DAVIES OF OLDHAM
LORD TUNNICLIFFE
Insert the following new Clause—
In every contract to supply a service, traders who are ring-fenced bodies
providing financial services as defined under section 142A of the Financial
Services and Markets Act 2000 (ring-fenced body) shall be subject to—
(a) a fiduciary duty to their consumers and small businesses with
respect to provision of—
(i) the operation of care services, and
(ii) the management of any individual contract to provide
services,
with reasonable care and skill, and
(b) a duty of care towards consumers and small businesses across the
financial services sector.”
After Clause 23
LORD BRIDGES OF HEADLEY
Insert the following new Clause—
(1) Section 26A of the Financial Services and Markets Act 2000 (agreements
relating to credit) is amended as follows.
(2) In subsection (4)—
(a) the words from “has” to the end become paragraph (a);
(b) after that paragraph insert—
“(b) is an appointed representative in relation to that
activity,
“(c) is an exempt person in relation to that activity, or
(d) is a person to whom, as a result of Part 20, the
general prohibition does not apply in relation to that
activity.”
(3) In subsection (5)—
(a) the words from “the agreement” (in the third place they occur) to
the end become paragraph (a) (and the existing paragraphs (a) and
(b) become sub-paragraphs (i) and (ii) of that paragraph);
(b) after that paragraph insert—
“(b) that person is an appointed representative in
relation to that activity,
“(c) that person is an exempt person in relation to that
activity, or
(d) that person is a person to whom, as a result of Part
20, the general prohibition does not apply in relation
to that activity.””
Insert the following new Clause—
(1) Section 27 of the Financial Services and Markets Act 2000 (agreements
made through unauthorised persons) is amended as follows.
(2) After subsection (1) insert—
“(1ZA) But this section does not apply to a regulated credit agreement or a
regulated consumer hire agreement unless the provider knows
before the agreement is made that the third party had some
involvement in the making of the agreement or matters preparatory
to its making.”
(3) In subsection (1A) for “The agreement” substitute “An agreement to which
this section applies”.
(4) After subsection (4) insert—
“(5) For the purposes of subsection (1ZA)—
“regulated consumer hire agreement” has the meaning given
by article 60N of the Financial Services and Markets Act
2000 (Regulated Activities) Order 2001;
“regulated credit agreement” has the meaning given by article
60B of that Order.””
Insert the following new Clause—
(1) The Financial Services and Markets Act 2000 is amended as follows.
(2) After Part 17 insert—
“PART 17A
Transformer Vehicles
284A Transformer vehicles
(1) In this section “transformer vehicle” means an undertaking (“A”)
which—
(a) is established for the purposes of carrying on the activities
mentioned in subsection (2), or
(b) carries on those activities.
(2) The activities referred to in subsection (1) are—
(a) assuming risk from another undertaking (“B”), and
(b) fully funding A’s exposure to that risk by issuing
investments where the repayment rights of the investors are
subordinated to A’s obligations to B in respect of the risk.
(3) The Treasury may by regulations make provision for facilitating,
and provision for regulating—
(a) the establishment and operation of transformer vehicles;
(b) the activities mentioned in subsection (2);
(c) the trading of investments issued by transformer vehicles.
(4) Regulations under subsection (3) may (amongst other things) make
provision—
(a) for the incorporation and registration in the United
Kingdom of bodies corporate;
(b) for a body incorporated by virtue of the regulations to take
such form and name as may be determined in accordance
with the regulations;
(c) as to the purposes for which such a body may exist and the
investments which it may issue;
(d) as to the constitution, ownership, management and
operation of such a body;
(e) for such a body to comprise different parts;
(f) for such parts to have legal personality distinct from that of
the body;
(g) as to the holding and management of the assets and
liabilities of such a body, including provision for the
segregation of assets and liabilities relating to different
risks;
(h) as to the powers, duties, rights and liabilities of such a body
and of other persons, including—
(i) its directors and other officers;
(ii) its shareholders, and persons who hold the
beneficial title to shares in it without holding the
legal title;
(iii) its auditor;
(iv) any persons holding assets for it;
(v) any persons who act or purport to act on its behalf;
(i) as to the merger of one or more such bodies and the division
of such a body;
(j) for the appointment and removal of an auditor for such a
body;
(k) as to the winding up and dissolution of such a body;
(l) enabling the FCA or the PRA to apply to a court for an order
removing or replacing any director of, or person holding
assets for, such a body;
(m) for the carrying out of investigations by persons appointed
by the FCA or the PRA.
(5) If regulations under subsection (3) make the provision mentioned
in subsection (4)(e) references in subsection (4) to a body include its
constituent parts.
(6) Regulations under subsection (3) may—
(a) impose criminal liability;
(b) confer functions on the FCA or the PRA (including the
functions of making rules and giving directions);
(c) authorise the FCA or the PRA to require the Council of
Lloyd’s to exercise functions on its behalf (including
functions conferred otherwise than by the regulations);
(d) confer jurisdiction on any court or on the Tribunal;
(e) provide for fees to be charged by the FCA or the PRA in
connection with the carrying out of any of their functions
under the regulations (including fees payable on a
periodical basis);
(f) modify, exclude or apply (with or without modifications)
any primary or subordinate legislation (including any
provision of, or made under, this Act);
(g) make consequential amendments, repeals and revocations
of any such legislation;
(h) modify or exclude any rule of law.
(7) The provision that may be made by virtue of subsection (6)(f)
includes provision extending or adapting any power to make
subordinate legislation.
(8) Regulations under subsection (3) may provide that a reference in
the regulations to, or to any provision of, legislation (including an
EU instrument and legislation of a country or territory outside the
United Kingdom), is to be construed as a reference to that
legislation or that provision as amended from time to time.
(9) In this section—
“investment” includes any asset, right or interest;
“primary legislation” means an Act, an Act of the Scottish
Parliament, a Measure or Act of the National Assembly for
Wales, or Northern Ireland legislation;
“subordinate legislation” means an instrument made under
primary legislation.
(10) If a statutory instrument containing regulations under this section
would, apart from this subsection, be treated as a hybrid instrument
for the purposes of the Standing Orders of either House of
Parliament, it is to proceed in that House as if it were not a hybrid
instrument.”
(3) In section 429(2) (regulations subject to the affirmative procedure), after
“262,” insert “284A,”.”
After Clause 24
LORD MCKENZIE OF LUTON
Insert the following new Clause—
The Secretary of State shall, before any regulations under section 333A(2A)
of the Financial Services and Markets Act 2000, as inserted by section 24(3)
of this Act, come into force—
(a) undertake and publish a review of—
(i) the progress of provisions enabling a person to access a cash
balance or other money purchase benefits, and
(ii) the extent to which pension guidance has in practice
empowered consumers to make informed and confident
choices about their pension arrangements;
(b) introduce arrangements for establishing a research programme to
track consumer outcome with respect to the pensions guidance;
(c) review the adequacy of reporting requirements for pension
providers;
(d) strengthen safeguards against pension scams through the provision
of misleading guidance or advice;
(e) clarify the distinction between pensions guidance and pensions
advice;
(f) identify—
(i) the specific risks which consumers may face in the
secondary annuity market, and
(ii) any improvements, additional safeguards and resourcing
which are required for an extended pensions guidance
service to help individuals make decisions in connection
with transferring or dealing with the right to payments
under an annuity.”
After Clause 25
LORD NASEBY
BARONESS KRAMER
LORD DAVIES OF OLDHAM
Insert the following new Clause—
consider ownership models and size of firms
(1) After section 1E(2)(e) of the Financial Services and Markets Act 2000,
insert—
“(f) the importance to consumers of a diverse financial services
sector that includes both firms of different ownership
models (including mutual societies) and firms of different
sizes.”
(2) After section 2H(2) of the Financial Services and Markets Act 2000, insert—
“(3) In discharging its general functions, the PRA must also have regard
to the importance to consumers of a diverse financial services sector
that includes both firms of different ownership models (including
mutual societies) and firms of different sizes.””
Clause 29
LORD BRIDGES OF HEADLEY
Page 26, line 15, leave out “Sections 27 to 30” and insert “The following provisions”
Page 26, line 15, at end insert—
“(a) section (Transformer vehicles);
(b) sections 27 to 30.”