S.C.A.
Amendment Paper as at
Thursday 28th October 1999
STANDING COMMITTEE A
New Amendments handed in are marked thus *
FINANCIAL SERVICES AND MARKETS BILL
NOTE
The Amendments have been arranged in accordance with the Order of the Committee [6th July], as follows:—
Clause 1; Schedule 1; Clauses 2 to 20; Schedule 2; Clauses 21 to 28; Schedules 3 and 4; Clauses 29 to 33; Schedule 5; Clauses 34 to 37; Schedule 6; Clauses 38 to 69; Schedule 7; Clauses 70 to 82; Schedule 8; Clause 83; Schedule 9; Clauses 84 to 94; Schedule 10; Clauses 95 to 107; Schedule 11; Clauses 108 to 141; Schedule 12; Clauses 142 to 175; Schedule 13; Clauses 176 to 197; Schedule 14; Clauses 198 to 295; Schedule 15; Clauses 296 to 367; Schedules 16 and 17; new Clauses; new Schedules.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
307
Clause 63, page 30, line 5, leave out 'it appears to the Authority' and insert 'the Authority is satisfied beyond reasonable doubt'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
299
Clause 63, page 30, line 11, after 'in', insert 'what he was aware was or was likely to be'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
308
Clause 63, page 30, line 18, after 'publish', insert 'in a national newspaper'.
Mr Andrew Smith
344
Clause 64, page 30, line 35, leave out subsection (2).
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
300
Clause 64, page 30, leave out lines 38 to 41 and insert—
'(3) A warning notice must, if practicable, state whether the Authority proposes to impose a penalty or publish a statement.'.
Mr Andrew Smith
345
Clause 64, page 31, line 1, leave out subsection (6).
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
301
Clause 64, page 31, line 4, after first 'the' insert 'proposed'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
302
Clause 64, page 31, line 6, after first 'the' insert 'proposed'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
303
Clause 67, page 32, line 5, leave out 'such' and insert 'all approved persons and such other'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
304
Clause 68, page 32, line 15, at end add 'and different meanings may be prescribed for different cases.'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
309
Clause 68, page 32, line 15, at end add ', but shall in any event include natural persons and Scottish partnerships under section 4 of the Partnership Act 1890'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
366
Clause 74, page 34, line 36, at end insert ', but shall not include offerors making an offer together with the issuer'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
138
Clause 82, page 38, line 29, at end add—
'(6) The competent authority approved for the purpose of this section (the "non-listing competent authority") may be different from the competent authority appointed for the purpose of section 69 and in any such case references in Part VI to the competent authority shall in the case of a non-listing prospectus be construed as references to the non-listing competent authority.'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
367
Clause 85, page 40, line 3, at end insert 'and the procedure on such an appeal'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
368
Clause 85, page 40, line 7, at end add—
'(4) The provisions of sections 338(3) to 338(5) shall apply in relation to the warning notices as if the competent authority was the Authority.
(5) If, notwithstanding the representations made to the competent authority before the end of the period specified in the warning notice, the competent authority decides to impose a penalty on a person under section 84, the competent authority must give the person concerned written notice of the decision it takes and must inform him of the right of appeal available to him and the procedure on such an appeal.
(6) The provisions of sections 339(1)(c), 339(6) and 340 shall apply to any such notice under subsection (5) as if it were a decision notice and the competent authority was the Authority.'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
369
Clause 87, page 40, line 29, at end add—
'(2) The competent authority may not give a notice for payment under section 88(1) while the decision to give that notice is open to review.
(3) "Open to review" bears the meaning set out in section 339(7) as if references to the Tribunal were to the person or body to which appeals may be made under the arrangements to be established under subsection (1).'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
370
Clause 89, page 41, line 5, after 'action', insert 'additional to that referred to in section 84.'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
371
Clause 93, page 42, line 33, at end insert—
'(aa) to the competent authority, if the act or omission is shown to have been unreasonable, reckless or negligent; or'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
164
Schedule 10, page 211, line 23, at end insert ', to the extent that the offer is made to persons in the United Kingdom,'.
Mr Andrew Smith
346
Clause 95, page 43, line 38, leave out from 'likely' to end of line 42 and insert 'to be regarded by a regular user of that market who is aware of the behaviour as a failure on the part of the person or persons concerned to observe the standard of behaviour reasonably expected of a person in his or their position in relation to the market.'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
389
*Clause 95, page 43, line 40, leave out 'such informed participants as were mentioned in subsection (2)(a)' and insert 'informed participants who are unaware of the behaviour'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
140
Clause 95, page 43, line 42, leave out 'a true and fair' and insert 'not a false'.
Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson
139
Clause 95, page 43, line 42, at end insert '; and—
(d) which, in the case of behaviour which satisfies either or both of the conditions set out in subsection (2)(b) and 2(c), is intended to create that impression or distortion.'.
Mr Andrew Smith
347
Clause 95, page 43, line 43, leave out from 'that' to end of line 8 on page 44 and insert '—
(a) the behaviour is based on information which is not generally available to those using the market but which, if available to a regular user of the market, would or would be likely to be regarded by him as relevant when deciding the terms on which transactions in investments of the kind in question should be effected;
(b) the behaviour is likely to give a regular user of the market a false or misleading impression as to the supply of, or demand for, or as to the price or value of, investments of the kind in question;
(c) a regular user of the market would, or would be likely to, regard the behaviour as behaviour which would, or would be likely to, distort the market in investments of the kind in question.
( ) In determining whether behaviour amounted to market abuse by a particular person or by particular persons, regard must be had (among other matters) to the extent to which that person, or those persons—
(a) took care to avoid engaging in market abuse; or
(b) believed that the behaviour in question would not amount to market abuse.'.
