Financial Services and Markets Bill - continued        House of Commons

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The power to transfer
     1. - (1) The Treasury may by order provide for any function conferred on the competent authority which is exercisable for the time being by a particular person to be transferred so as to be exercisable by another person.
      (2) An order may be made under this paragraph only if-
    (a) the person from whom the relevant functions are to be transferred has agreed in writing that the order should be made; or
    (b) there is no such agreement but the Treasury are satisfied-
      (i) that one or more of paragraphs 3 to 6 apply; or
      (ii) that it is otherwise in the public interest that the order should be made.
Terms used
     2. In this Schedule-
    "functions", when used alone means the functions which the Treasury propose to transfer; and
    "transferee" means the person to whom it is intended to transfer those functions.
Competition etc: effect of controlling the official list
     3. This paragraph applies if it appears to the Treasury that-
    (a) the competent authority provides facilities through which transactions in things admitted to the official list may be effected;
    (b) one or more other persons provide, or wish to provide, similar facilities; and
    (c) it has become appropriate or desirable, in order to encourage or facilitate competition or in connection with the organisation and functioning of one or more markets, for the functions to be transferred.
Competition: scrutiny by the Director General of Fair Trading
     4. This paragraph applies if-
    (a) the Director General of Fair Trading has made a report with respect to rules made by, or practices of, the competent authority (acting in its capacity as such); and
    (b) as a result of that report it appears to the Treasury that such rules or practices have, or are intended or are likely to have, the effect of restricting, distorting or preventing competition to a significant extent.
Better performance
     5. This paragraph applies if the Treasury are satisfied that-
    (a) the competent authority's performance in discharging the functions has not been satisfactory; and
    (b) the manner in which, or efficiency with which, the functions are discharged would be significantly improved if they were transferred to the transferee.
     6. This paragraph applies if the Treasury are satisfied-
    (a) that transferring the functions in the way proposed would improve significantly the performance of other supervisory or regulatory functions discharged by the transferee; and
    (b) that the discharge of the functions would not be adversely affected by the proposed transfer.
     7. - (1) An order under this Schedule does not affect anything previously done by any person ("the previous authority") in the exercise of functions which are transferred by the order to another person ("the new authority").
      (2) Such an order may, in particular, include provision-
    (a) modifying or excluding any provision of Part VI in its application to any such functions;
    (b) for the transfer of any property, rights or liabilities relating to any such functions from the previous authority to the new authority;
    (c) for the carrying on and completion by the new authority of anything in the process of being done by the previous authority when the order takes effect;
    (d) for the substitution of the new authority for the previous authority in any instrument, contract or legal proceedings;
    (e) for the transfer of persons employed by the previous authority to the new authority and as to the terms on which they are to transfer;
    (f) making such amendments to any enactment as the Treasury consider appropriate in consequence of the transfer of functions effected by the order.
      (3) Nothing in this paragraph is to be taken as restricting the powers conferred by section 373.
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Prepared 14 December 1999