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Index of Amendments

     

Amendment Paper as at
Tuesday 1st February 2000

CONSIDERATION OF BILL


FINANCIAL SERVICES AND MARKETS BILL, AS AMENDED

NOTE

The Amendments have been arranged in accordance with the Order [27th January], as follows:

Amendments to Schedule 1 relating to the separation of the roles of chairman and chief executive of the Financial Services Authority; Amendments to paragraph 7 of that Schedule requiring the complaints scheme to make provision for complaints to be investigated quickly; Amendments to paragraph 8 of that Schedule; Amendments to paragraph 19 of that Schedule; New Clauses relating to the legal assistance scheme; New Clauses relating to reports by the Director General of Fair Trading; New Clauses relating to restrictions on powers of Treasury; New Clauses relating to conduct by the Authority of reviews of rules made under Part IX; New Clauses relating to judicial review; Amendments to Clause 52; Amendments to Clause 10; remaining New Clauses; remaining amendments to Clauses; New Schedules; remaining amendments to Schedules.

NEW CLAUSES RELATING TO CONDUCT BY THE AUTHORITY OF REVIEWS OF RULES MADE UNDER PART IX

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.'.


NEW CLAUSES RELATING TO JUDICIAL REVIEW

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 Chancellor of the Exchequer

115

Page     24,     line     15     [Clause     52],     leave out from beginning to 'may' in line 16 and insert 'An applicant who is aggrieved by the determination of an application made under this Part'.

   

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

222

Page     24,     line     16     [Clause     52],     at end insert—

    '(1A) The Authority shall give notice of its decision to refuse an application to the applicant and the provisions of sections 350 and 351 shall apply as if the notice was a decision notice.'.

   

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

223

Page     24,     line     17     [Clause     52],     leave out from 'person' to end of line 18 and insert 'who is or may be affected may refer to the Tribunal any decision of the Authority to use its own-initiative power.'.


   

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

479

Page     4,     line     35     leave out Clause 10.

   

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

16

Page     4,     line     35     [Clause     10],     leave out 'may' and insert 'shall'.

   

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

17

Page     4,     line     35     [Clause     10],     after 'conduct', insert ', in 2002 and every five years thereafter,'.

   

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

18

Page     4,     line     38     [Clause     10],     leave out 'A review may be limited by the Treasury to' and insert 'The Treasury may also require separate limited and independent reviews of'.

   

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

477

Page     4,     line     41     [Clause 10],     leave out subsection (3).


   

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

478

Page     5,     line     10     [Clause 10],     leave out 'appearing to the Treasury to be'.


REMAINING 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.'.


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.'.

 
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Prepared 1 Feb 2000