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Index of Amendments

     

NOTICES OF AMENDMENTS

given up to and including

Monday 24th January 2000


New Amendments handed in are marked thus *

CONSIDERATION OF BILL

FINANCIAL SERVICES AND MARKETS BILL, AS AMENDED


NEW CLAUSES

Exercise of EEA rights by UK firms

   

Mr Chancellor of the Exchequer

NC6

To move the following Clause:—

    '. Part III of Schedule 3 makes provision in relation to the exercise outside the United Kingdom of EEA rights by UK firms.'.


The threshold conditions

   

Mr Chancellor of the Exchequer

NC7

To move the following Clause:—

    '.—(1) "The threshold conditions", in relation to a regulated activity, means the conditions set out in Schedule 6.

    (2) In giving or varying permission, or imposing or varying any requirement, under this Part the Authority must ensure that the person concerned will satisfy, and continue to satisfy, the threshold conditions in relation to all of the regulated activities for which he has or will have permission.

    (3) But the duty imposed by subsection (2) does not prevent the Authority, having due regard to that duty, from taking such steps as it considers are necessary, in relation to a particular authorised person, in order to secure its regulatory objective of the protection of consumers.'.


Legal assistance scheme

   

Mr Chancellor of the Exchequer

NC8

To move the following Clause:—

    '.—(1) The Lord Chancellor may by regulations establish a scheme governing the provision of legal assistance in connection with proceedings before the Tribunal.

    (2) If the Lord Chancellor establishes a scheme under subsection (1), it must provide that a person is eligible for assistance only if—

      (a) he falls within subsection (3); and

      (b) he fulfils such other criteria (if any) as may be prescribed as a result of section (Provisions of the legal assistance scheme)(1)(d).

    (3) A person falls within this subsection if he is an individual who has referred a matter to the Tribunal under section 101(4).

    (4) In this Part of this Act "the legal assistance scheme" means any scheme in force under subsection (1).'.


Provisions of the legal assistance scheme

   

Mr Chancellor of the Exchequer

NC9

To move the following Clause:—

    '.—(1) The legal assistance scheme may, in particular, make provision as to—

      (a) the kinds of legal assistance that may be provided;

      (b) the persons by whom legal assistance may be provided;

      (c) the manner in which applications for legal assistance are to be made;

      (d) the criteria on which eligibility for legal assistance is to be determined;

      (e) the persons or bodies by whom applications are to be determined;

      (f) appeals against refusals of applications;

      (g) the revocation or variation of decisions;

      (h) its administration and the enforcement of its provisions.

    (2) Legal assistance under the legal assistance scheme may be provided subject to conditions or restrictions, including conditions as to the making of contributions by the person to whom it is provided.'.


Funding of the legal assistance scheme

   

Mr Chancellor of the Exchequer

NC10

To move the following Clause:—

    '.—(1) The Authority must pay to the Lord Chancellor such sums at such times as he may, from time to time, determine in respect of the anticipated or actual cost of legal assistance provided in connection with proceedings before the Tribunal under the legal assistance scheme.

    (2) In order to enable it to pay any sum which it is obliged to pay under subsection (1), the Authority must make rules requiring the payment to it by authorised persons or any class of authorised person of specified amounts or amounts calculated in a specified way.

    (3) Sums received by the Lord Chancellor under subsection (1) must be paid into the Consolidated Fund.

    (4) The Lord Chancellor must, out of money provided by Parliament fund the cost of legal assistance provided in connection with proceedings before the Tribunal under the legal assistance scheme.

    (5) Subsection (6) applies if, as respects a period determined by the Lord Chancellor, the amount paid to him under subsection (1) as respects that period exceeds the amount he has expended in that period under subsection (4).

    (6) The Lord Chancellor must—

      (a) repay, out of money provided by Parliament, the excess to the Authority; or

      (b) take the excess into account on the next occasion on which he makes a determination under subsection (1).

    (7) The Authority must make provision for any sum repaid to it under subsection (6)(a)—

      (a) to be distributed among—

          (i) the authorised persons on whom a levy was imposed in the period in question as a result of rules made under subsection (2); or

          (ii) such of those persons as it may determine;

      (b) to be applied in order to reduce any amounts which those persons, or such of them as it may determine, are or will be liable to pay to the Authority, whether under rules made under subsection (2) or otherwise; or

      (c) to be partly so distributed and partly so applied.

    (8) If the Authority considers that it is not practicable to deal with any part of a sum repaid to it under subsection (6)(a) in accordance with provision made by it as a result of subsection (7), it may, with the consent the Lord Chancellor, apply or dispose of that part of that sum in such manner as it considers appropriate.

    (9) "Specified" means specified in the rules.'.


Tax treatment of levies and repayments

   

Mr Chancellor of the Exchequer

NC11

To move the following Clause:—

    '.—(1) In the Income and Corporation Taxes Act 1988 ("the 1988 Act"), in section 76 (expenses of management: insurance companies), for subsections (7) and (7A) substitute—

        "(7) For the purposes of this section any sums paid by a company by way of a levy shall be treated as part of its expenses of management.

    (7A) "Levy" means—

      (a) a payment required under rules made under section (Funding of the legal assistance scheme)(2) of the Financial Services and Markets Act 2000 ("the Act of 2000");

      (b) a levy imposed under the Financial Services Compensation Scheme;

      (c) a payment required under rules made under section 209 of the Act of 2000;

      (d) a payment required in accordance with the standard terms fixed under paragraph 18 of Schedule 14 to the Act of 2000."

        (2) After section 76 of the 1988 Act insert—

    
      (b) any payment which is made to the authorised person as a result of a repayment provision is to be treated as a trading receipt.

    (2) "Levy" has the meaning given in section 76(7A).

    (3) "Repayment provision" means any provision made by virtue of—

      (a) section (Funding of the legal assistance scheme)(7) of the Financial Services and Markets Act 2000 ("the Act of 2000");

      (b) section 188(1)(e) of the Act of 2000.

    (4) "Authorised person" has the same meaning as in the Act of 2000.

    

"Levies and
repayments under the Financial Services and Markets Act 2000.
76A.—(1) In computing the amount of the profits to be charged under Case I of Schedule D arising from a trade carried on by an authorised person (other than an investment company)—

      (a) to the extent that it would not be deductible apart from this section, any sum expended by the authorised person in paying a levy may be deducted as an allowable expense;

        (3) "Levy" has the meaning given in section 76(7A).

    (4) "Costs rules" means—

      (a) rules made under section 205 of the Financial Services and Markets Act 2000;

      (b) provision relating to costs contained in the standard terms fixed under paragraph 18 of Schedule 14 to that Act.

    (5) "Repayment provision" has the meaning given in section 76A(3)." '.

    


Deposit-taking in breach of general prohibition

   

Mr Chancellor of the Exchequer

NC12

To move the following Clause:—

    '.—(1) This section applies to an agreement between a person ("the depositor") and another person ("the deposit-taker") in the course of carrying on by the deposit taker of deposit-taking in contravention of the general prohibition.

    (2) If the depositor is not entitled under the agreement to recover without delay any money deposited by him, he may apply to the court for an order directing the deposit-taker to return the money to him.

    (3) The court need not make such an order if it is satisfied that—

      (a) it would not be just and equitable for the money deposited to be returned; and

      (b) the deposit-taker reasonably believed that he was not contravening the general prohibition by making the agreement.

    (4) "Agreement" means an agreement—

      (a) made after this section comes into force; and

      (b) the making or performance of which constitutes, or is part of, deposit-taking.

    (5) "Court" means

      (a) the High Court, or

      (b) in Scotland, the Court of Session.'.

Levies and
repayments under the Financial Services and Markets Act 2000: investment companies.
76B.—(1) For the purposes of section 75 any sums paid by an investment company—

      (a) by way of a levy, or

      (b) as a result of an award of costs under costs rules,

      shall be treated as part of its expenses of management.

    (2) If a payment is made to an investment company as a result of a repayment provision, the company shall be charged to tax under Case VI of Schedule D on the amount of that payment.

 
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Prepared 24 Jan 2000