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

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Statements under section 351: consultation

   

Mr Chancellor of the Exchequer

NC31

To move the following Clause:—

    '.—(1) Before issuing a statement of procedure under section 351, the Authority must publish a draft of the proposed statement in the way appearing to the Authority to be best calculated to bring it to the attention of the public.

    (2) The draft must be accompanied by notice that representations about the proposal may be made to the Authority within a specified time.

    (3) Before issuing the proposed statement of procedure, the Authority must have regard to any representations made to it in accordance with subsection (2).

    (4) If the Authority issues the proposed statement of procedure it must publish an account, in general terms, of—

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

      (b) its response to them.

    (5) If the statement of procedure differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant, the Authority must (in addition to complying with subsection (4)) publish details of the difference.

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

    (7) This section also applies to a proposal to revise a statement of policy.'.


Misleading the Director General of Fair Trading

   

Mr Chancellor of the Exchequer

NC32

To move the following Clause—

    '. Section 44 of the Competition Act 1998 (offences connected with the provision of false or misleading information) applies in relation to any function of the Director General of Fair Trading under this Act as if it were a function under Part I of that Act.'.


Carrying on regulated activities by way of business

   

Mr Chancellor of the Exchequer

NC33

To move the following Clause—

    '.—(1) The Treasury may by order make provision—

      (a) as to the circumstances in which a person who would otherwise not be regarded as carrying on a regulated activity by way of business is to be regarded as doing so;

      (b) as to the circumstances in which a person who would otherwise be regarded as carrying on a regulated activity by way of business is to be regarded as not doing so.

    (2) An order under subsection (1) may be made so as to apply—

      (a) generally in relation to all regulated activities;

      (b) in relation to a specified category of regulated activity; or

      (c) in relation to a particular regulated activity.

    (3) An order under subsection (1) may be made so as to apply—

      (a) for the purposes of all provisions;

      (b) for a specified group of provisions; or

      (c) for a specified provision.

    (4) "Provision" means a provision of, or made under, this Act.

    (5) Nothing in this section is to be read as affecting the provisions of section 373(2).'.


Authority's general duty

   

Mr Chancellor of the Exchequer

NC35

To move the following Clause—

'PART XVIIIA

PROVISION OF FINANCIAL SERVICES BY MEMBERS OF THE
PROFESSIONS

    .—(1) The Authority must keep itself informed about—

      (a) the way in which designated professional bodies supervise and regulate the carrying on of exempt regulated activities by members of the professions in relation to which they are established;

      (b) the way in which such members are carrying on exempt regulated activities.

    (2) In this Part—

      "exempt regulated activities" means regulated activities which may be carried on by members of a profession which is supervised and regulated by a designated professional body without breaching the general prohibition; and

      "members", in relation to a profession, means persons who are entitled to practise the profession in question and, in practising it, are subject to the rules of the body designated in relation to that profession, whether or not they are members of that body.

    (3) The Authority must keep under review the desirability of exercising any of its powers under this Part.

    (4) Each designated professional body must co-operate with the Authority, by the sharing of information and in other ways, in order to enable the Authority to perform its functions under this Part.'.


Designation of professional bodies

   

Mr Chancellor of the Exchequer

NC36

To move the following Clause—

    '.—(1) The Treasury may by order designate bodies for the purposes of this Part.

    (2) A body designated under subsection (1) is referred to in this Part as a designated professional body.

    (3) The Treasury may designate a body under subsection (1) only if they are satisfied that—

      (a) the basic condition, and

      (b) one or more of the additional conditions,

    are met in relation to it.

    (4) The basic condition is that the body has rules applicable to the carrying on by members of the profession in relation to which it is established of regulated activities which, if the body were to be designated, would be exempt regulated activities.

    (5) The additional conditions are that—

      (a) the body has power under any enactment to regulate the practice of the profession;

      (b) being a member of the profession is a requirement under any enactment for the exercise of particular functions or the holding of a particular office;

      (c) the body has been recognised for the purpose of any enactment other than this Act and the recognition has not been withdrawn;

      (d) the body is established in an EEA State other than the United Kingdom and in that State—

          (i) the body has power corresponding to that mentioned in paragraph (a);

          (ii) there is a requirement in relation to the body corresponding to that mentioned in paragraph (b); or

          (iii) the body is recognised in a manner corresponding to that mentioned in paragraph (c).

    (6) "Enactment" includes an Act of the Scottish Parliament, Northern Ireland legislation and subordinate legislation (whether made under an Act, an Act of the Scottish Parliament or Northern Ireland legislation).

    (7) "Recognised" means recognised by—

      (a) a Minister of the Crown;

      (b) the Scottish Ministers;

      (c) a Northern Ireland Minister;

      (d) a Northern Ireland department or its head.'.


Exemption from the general prohibition

   

Mr Chancellor of the Exchequer

NC37

To move the following Clause—

    '.—(1) The general prohibition does not apply to the carrying on of a regulated activity by a person ("P") if—

      (a) the conditions set out in subsections (2) to (7) are satisfied; and

      (b) there is not in force—

          (i) a direction under section (Directions in relation to the general prohibition), or

          (ii) an order under section (Orders in relation to the general prohibition),

    which prevents this subsection from applying to the carrying on of that activity by him.

    (2) P must be—

      (a) a member of a profession; or

      (b) controlled or managed by one or more such members.

    (3) P must not receive from a person other than his client any pecuniary reward or other advantage, for which he does not account to his client, arising out of his carrying on of any of the activities.

    (4) The manner of the provision by P of any service in the course of carrying on the activities must be incidental to the provision by him of professional services.

    (5) P must not carry on, or hold himself out as carrying on, a regulated activity other than one which rules made as a result of section (Rules in relation to persons to whom the general prohibition does not apply)(3) allow him to carry on.

    (6) The activities must not be of a description, or relate to an investment of a description, specified in an order made by the Treasury for the purposes of this subsection.

    (7) The activities must be the only regulated activities carried on by P.

    (8) "Professional services" means services—

      (a) which do not constitute carrying on a regulated activity, and

      (b) the provision of which is supervised and regulated by a designated professional body.'.


Directions in relation to the general prohibition

   

Mr Chancellor of the Exchequer

NC38

To move the following Clause—

    '.—(1) The Authority may direct that section (Exemption from the general prohibition)(1) is not to apply to the extent specified in the direction.

    (2) A direction under subsection (1)—

      (a) must be in writing;

      (b) may be given in relation to different classes of person or different descriptions of regulated activity.

    (3) The Authority may exercise the power conferred by subsection (1) only if it is satisfied that it is desirable in order to protect the interests of clients.

    (4) In considering whether it is so satisfied, the Authority must have regard amongst other things to the effectiveness of any arrangements made by any designated professional body—

      (a) for securing compliance with rules made under (Rules in relation to persons to whom the general prohibition does not apply)(1);

      (b) for dealing with complaints against its members in relation to the carrying on by them of exempt regulated activities;

      (c) in order to offer redress to clients who suffer, or claim to have suffered, loss as a result of misconduct by its members in their carrying on of exempt regulated activities;

      (d) for co-operating with the Authority under section (Authority's general duty)(4).

    (5) In this Part "clients" means—

      (a) persons who use, or may be contemplating using, any of the services provided by a member of a profession in the course of carrying on exempt regulated activities;

      (b) persons who have rights which are derived from, or otherwise attributable to, or which may be adversely affected by, the use of such services by other persons.'.

 
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Prepared 24 Jan 2000