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

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Review of regulatory system and performance of Authority

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

NC3

To move the following Clause:—

    '.—(1) The Treasury must on the third anniversary of the coming into force of section 2 appoint an independent person to conduct a review of the regulatory system established by this Act and the performance of the Authority in discharging its general duties under section 2.

    (2) The scope of such a review may be limited by the Treasury in such manner as the Treasury may specify in appointing the person to conduct it but the review must cover the extent to which the Authority, in discharging its general functions, has met the regulatory objectives and had regard to the matters in section 2(3).

    (3) On completion of a review under this section, the person conducting it must make a written report to the Treasury—

      (a) setting out the result of the review; and

      (b) making such recommendations (if any) as he considers appropriate.

    (4) A copy of the report must be—

      (a) laid before each House of Parliament; and

      (b) published in such manner as the Treasury considers appropriate.

    (5) Any expenses reasonably incurred in the conduct of the review are to be met by the Treasury out of money provided by Parliament.

    (6) "Independent" means independent of the Authority.'.


Authority to conduct review of rules made under Part IX

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

NC4

To move the following Clause:—

    '.—(1) Within three years of any rules (other than rules which impose fees) being made under this Part the Authority must carry out a review of such rules to determine whether they continue to be appropriate for the purpose for which they were made.

    (2) If, following such a review, the Authority concludes that the rules in question should be changed in a way which is, in the opinion of the Authority, significant the Authority must make new rules and the provisions of section 127 shall apply to them.

    (3) If, following a review, the Authority concludes that the rules in question should be approved in the form then in force, or in a form which does not differ from such rules in a way which is, in the opinion of the Authority, significant, it must publish a statement of its conclusions in the way appearing to be best calculated to bring it to the attention of the public.

    (4) The statement of the Authority's conclusions must be accompanied by—

      (a) a cost benefit analysis;

      (b) an explanation of the purpose of the rules;

      (c) a schedule of the changes (if any) proposed to be made to the rules;

      (d) a statement of the Authority's reasons for believing that the rules continue to be compatible with its general duties under section 2; and

      (e) a statement that representations about the rules may be made to the Authority within a specified time.

    (5) Before approving any rules to which subsection (3) applies, the Authority must have regard to any representations made to it in accordance with subsection (4)(e).

    (6) If the rules are approved by the Authority, it must make a statement as to the representations (if any) made to it and its response in general terms.

    (7) If the rules approved by the Authority differ from the rules under review (taking account of the changes referred to in subsection (4)(c)) in a way which is, in the opinion of the Authority, significant—

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

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

    (8) "Cost benefit analysis" means an estimate of the costs together with an estimate of the benefits that will arise if the rules under review are approved.

    (9) Rules approved under this section shall be deemed to be made on the date on which the rules are approved.'.


Relationship between guidance and rules issued by Authority

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

NC5

To move the following Clause:—

    '(1) If a person behaves in a way which complies with general guidance he shall not be regarded, for the purposes of this Act, as contravening any rule.

    (2) The Authority may give guidance (which is not general guidance) to the effect that compliance with the guidance by the person or persons to whom the guidance is expressed to be given shall not be regarded, for the purposes of this Act, as contravening any rule.

    (3) "General guidance" has the same meaning as in section 130.'.


Transfer to Financial Services Ombudsman of functions of Pensions Ombudsman

   

Mrs Jacqui Lait

NC34

To move the following Clause:—

    '.—(1) There shall be transferred to the scheme operator all the functions and powers of the Pensions Ombudsman established under Part X of the Pension Schemes Act 1993 (as amended by the Pensions Act 1995).

    (2) The Treasury may by order—

      (a) provide for the transfer of any property, rights or liabilities held, enjoyed or incurred by any person in connection with functions transferred under this section;

      (b) provide for the carrying on and completion by or under the authority of the scheme operator of any proceedings, investigations or other matters commenced, before the order takes effect, by or under the authority of the Pensions Ombudsman;

      (c) make any transitional, incidental or consequential provision which is necessary or expedient as a result of the transfer of functions under this section;

      (d) provide for the substitution of the scheme operator for the Pensions Ombudsman in any instrument, contract or legal proceedings made or begun before the order takes effect.

    (3) The Treasury may make regulations providing for—

      (a) the transfer to the scheme operator of any staff previously employed in the service of the Pensions Ombudsman;

      (b) the terms on which any such transfer shall take place; and

      (c) the terms on which the employment of any person previously employed in the service of the Pensions Ombudsman may be terminated.

    (4) In this section "scheme operator" means the body corporate established under Schedule 14 to operate the disputes resolution procedure referred to in section 200 as "the ombudsman scheme".'.


Judicial review

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

NC43

*To move the following Clause:—

    'Nothing in the provisions of this Act shall restrict, impede, or prevent a judicial review of the exercise or non-exercise of any power or discretion vested in the Authority or the Treasury by or under this Act.'.


   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

12

Page     1,     line     17     [Clause 2],     leave out 'and'.

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

13

Page     1,     line     19     [Clause 2],     at end insert 'and

      (c) which is reasonable, fair, open, accountable and proportionate'.

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

30

Page     1,     line     22     [Clause     2], at end insert—

      '(bb) the maintenance of a vigorous and effective market in financial services;'.


   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

192

Page     2,     line     2     [Clause     2],     at end insert—

      '(e) the maintenance of competition and promotion of United Kingdom competitiveness.'

   

Mr William Hague
Mr Francis Maude [R]
Mr David Heathcoat-Amory
Mr Howard Flight [R]
Sir Nicholas Lyell
Mr Tim Loughton [R]

49

Page     2,     line     3     [Clause     2],     leave out from 'must' to end of line 18 and insert 'seek to—

      (a) use its resources in the most efficient and economic way;

      (b) take into account the responsibilities of those who manage the affairs of authorised persons and ensure that it does not intrude unnecessarily into their management of the commercial affairs of such persons;

      (c) impose burdens or restrictions on a person, or on the carrying on of an activity, only if they are proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

      (d) facilitate, and not unnecessarily impede, innovation in connection with regulated activities;

      (e) maintain the international competitiveness of the United Kingdom and authorised persons;

      (f) impede or distort competition between authorised persons only to the extent that such impediment or distortion is necessary.'.

   

Mr Chancellor of the Exchequer

240

Page     2,     line     17     [Clause     2],     leave out paragraph (f) and insert—

      '(f) the need to minimise the adverse effects on competition that may arise from any exercise of its general functions;

      (g) the desirability of facilitating competition between those who are subject to any form of regulation by the Authority.'.

 
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