Amendments proposed to the Financial Services and Markets Bill - continued House of Commons

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Consultation

   

Mr Andrew Smith

NC9

To move the following Clause—

    '.—(1) If the Authority proposes to give a direction under section 286 or 288, it must publish a draft of the proposed direction.

    (2) The draft must be accompanied by—

      (a) an estimate of the costs, and an analysis of the benefits, that will arise if the direction is given ("a cost benefit analysis"); and

      (b) a statement that representations about the proposed direction may be made to the Authority within a reasonable time.

    (3) Before giving the proposed direction, the Authority must have regard to any representations made to it in accordance with subsection (2)(b).

    (4) If the Authority gives the proposed direction it must publish a statement describing, in general terms—

      (a) the representations made to it in accordance with subsection (2)(b); and

      (b) its response to them.

    (5) If the direction differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant—

      (a) the Authority must publish a statement of the difference; and

      (b) the statement must be accompanied by a cost benefit analysis.

    (6) Subsections (1) to (5) do not apply if the Authority considers that the delay involved in complying with them would be prejudicial to the interests of consumers.

    (7) Subsection (2)(a) does not apply if the Authority considers that the costs incurred by those who would be affected by the proposed direction, if it were to be given—

      (a) would be less, or no more, than costs presently incurred by them ("present costs"); or

      (b) would result in an increase in present costs which is of minimal significance.

    (8) The Authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

    (9) When the Authority is required to publish a document under this section it must do so in the way appearing to it to be best calculated to bring it to the attention of the public.'.


Requirements imposed under section 289

   

Mr Andrew Smith

NC10

To move the following Clause—

    '.—(1) A requirement imposed under section 289 takes effect—

      (a) immediately, if the notice given under subsection (2) states that that is the case;

      (b) in any other case, on such date as may be specified in that notice.

    (2) If the Authority proposes to impose a requirement on a former underwriting member ("A") under section 289, or imposes such a requirement on him which takes effect immediately, it must give him written notice.

    (3) The notice must—

      (a) give details of the requirement;

      (b) state the Authority's reasons for imposing it;

      (c) inform A that he may make representations to the Authority within such period as may be specified in the notice (whether or not he has referred the matter to the Tribunal);

      (d) inform him of the date on which the requirement took effect or will take effect; and

      (e) inform him of his right to refer the matter to the Tribunal.

    (4) If, having considered any representations made by A, the Authority decides—

      (a) to impose the proposed requirement, or

      (b) if it has been imposed, not to revoke it,

    it must give him written notice.

    (6) If the Authority decides—

      (a) not to impose a proposed requirement, or

      (b) to revoke a requirement that has been imposed,

    it must give A written notice.

    (7) If the Authority proposes to refuse an application by A for the variation or revocation of a requirement it must give him a warning notice.

    (8) The Authority, having considered any representations made in response to the warning notice, must give A written notice of its decision on the application.

    (9) A notice given under—

      (a) subsection (4), or

      (b) subsection (8) in the case of a decision to refuse the application,

    must inform A of his right to refer the matter to the Tribunal.'.


Disclosure of information by the Inland Revenue

   

Mr Andrew Smith

NC11

To move the following Clause—

    '.—(1) No obligation as to secrecy imposed by statute or otherwise prevents the disclosure of Revenue information to—

      (a) the Authority, or

      (b) the Secretary of State,

    if the disclosure is made for the purpose of assisting in the investigation of a matter under section 138 or with a view to the appointment of an investigator under that section.

    (2) A disclosure may only be made under subsection (1) by or under the authority of the Commissioners of Inland Revenue.

    (3) Section 305 does not apply to Revenue information.

    (4) Revenue information obtained under this section may not be used except—

      (a) for the purpose of deciding whether to appoint an investigator under section 138;

      (b) in the conduct of an investigation under section 138;

      (c) in criminal proceedings brought against a person under this Act or the Criminal Justice Act 1993 as a result of an investigation under section 138;

      (d) for the purpose of taking action under this Act against a person as a result of an investigation under section 138;

      (e) in proceedings before the Tribunal as a result of action taken as mentioned in paragraph (d).

    (5) Revenue information obtained under this section may not be disclosed except—

      (a) by or under the authority of the Commissioners of Inland Revenue;

      (b) in proceedings mentioned in subsection (4)(c) or (e) or with a view to their institution.

    (6) Subsection (5) does not prevent the disclosure of Revenue information to a person to whom it could have been disclosed under subsection (1).

    (7) "Revenue information" means information held by a person which it would be an offence under section 182 of the Finance Act 1989 for him to disclose.'.


Authority's powers to participate in proceedings: individual voluntary arrangements

   

Mr Andrew Smith

NC12

To move the following Clause—

    '.—(1) The Authority is entitled to be heard on an application by an individual who is an authorised person under section 253 of the 1986 Act (or Article 227 of the 1989 Order).

    (2) Subsections (3) to (6) apply if such an order is made on the application of such a person.

    (3) A person appointed for the purpose by the Authority is entitled to attend any meeting of creditors of the debtor summoned under section 257 of the 1986 Act (or Article 231 of the 1989 Order).

    (4) Notice of the result of a meeting so summoned is to be given to the Authority by the chairman of the meeting.

    (5) The Authority may apply to the court—

      (a) under section 262 of the 1986 Act (or Article 236 of the 1989 Order); or

      (b) under section 263 of the 1986 Act (or Article 237 of the 1989 Order).

    (6) If a person other than the Authority makes an application to the court under any provision mentioned in subsection (5), the Authority is entitled to be heard at any hearing relating to the application.'.


Authority's power to participate in proceedings: receivership

   

Mr Andrew Smith

NC13

To move the following Clause—

    '.—(1) This section applies if a receiver has been appointed in relation to a company which—

      (a) is, or has been, an authorised person;

      (b) is, or has been, an appointed representative; or

      (c) is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.

    (2) The Authority is entitled to be heard on an application made under section 35 or 63 of the 1986 Act (or Article 45 of the 1989 Order).

    (3) The Authority is entitled to make an application under section 41(1)(a) or 69(1)(a) of the 1986 Act (or Article 51(1)(a) of the 1989 Order).

    (4) A report under section 48(1) or 67(1) of the 1986 Act (or Article 58(1) of the 1989 Order) must be sent by the person making it to the Authority.

    (5) A person appointed for the purpose by the Authority is entitled—

      (a) to attend any meeting of creditors of the company summoned under any enactment;

      (b) to attend any meeting of a committee established under section 49 or 68 of the 1986 Act (or Article 59 of the 1989 Order); and

      (c) to make representations as to any matter for decision at such a meeting.'.


Receiver's duty to report to Authority

   

Mr Andrew Smith

NC14

To move the following Clause—

    '. If—

      (a) a receiver has been appointed in relation to a company, and

      (b) it appears to the receiver that the company is carrying on, or has carried on, a regulated activity in contravention of the general prohibition,

    the receiver must report the matter to the Authority without delay.'.


Data protection

   

Mr Andrew Smith

NC18

*To move the following Clause—

    '. In section 31 of the Data Protection Act 1998 (regulatory activity), after subsection (4), insert—

            "(4A) Personal data processed for the purpose of discharging any function which is conferred by or under Part XV of the Financial Services and Markets Act 2000 on the body established by the Financial Services Authority for the purposes of that Part are exempt from the subject information provisions in any case to the extent to which the application of those provisions to the data would be likely to prejudice the proper discharge of the function." '.


Maintenance of competition and promotion of United Kingdom competitiveness

   

Mr David Heathcoat-Amory
Mr Howard Flight
Mr Tim Loughton
Sir Nicholas Lyell
Mr Andrew Tyrie
Mr Keith Simpson

NC1

To move the following Clause:—

    '.—The maintenance of competition and promotion of United Kingdom competitiveness objective referred to in section 2(2)(e) is: regulating in a way which does not unnecessarily impede competition in financial services and markets in the United Kingdom or by any category of authorised participants and which seeks to secure a regulatory regime in the United Kingdom which provides a competitive advantage internationally'.

 
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Prepared 7 Dec 1999