Vote Bundle Text (900201-06)

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.'.

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".'.

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

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]

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

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

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]

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.'.

Dr Vincent Cable
Mr Brian Cotter
Mr Colin Breed

456

Page 2, line 18 [Clause 2], at end insert—

'(g) the need to facilitate access to appropriate financial services for disadvantaged consumers.'.

Mr Chancellor of the Exchequer

241

Page 2, line 23 [Clause 2], leave out 'advice and' and insert 'general'.

Mr Chancellor of the Exchequer

242

Page 2, line 26 [Clause 2], at end insert—

'( ) "General guidance" has the meaning given in section 130(5).'.

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

235

Page 2, line 26 [Clause 2], at end insert—

'(4A) The Authority must ensure that its staff responsible for or involved in—

(a) monitoring, investigating or disciplining authorised or approved persons or,

(b) investigating persons suspected of engaging in, or of requiring or encouraging another person to engage in, market abuse or any offence for which it can institute proceedings, and

shall be suitably competent and shall have sufficient knowledge of the relevant financial sector to fulfil their functions.'.

Sir Nicholas Lyell

405

Page 3, line 19 [Clause 6], leave out 'by a regulated person' and insert '—

(a) by a regulated person, or

(b) in contravention of the general prohibition,'.

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

193

Page 3, line 30 [Clause 6], at end insert—

'(2A) In order to meet that objective the Authority must maintain procedures for monitoring the financial system to identify possible financial crime and to alert consumers and regulated persons about its suspicions as soon as practicable.'

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

194

Page 3, line 39 [Clause 6], at end insert—

'(6) "Consumers" has the same meaning as in section 5.'

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

Page 4, line 10 [Clause 8], leave out from 'The' to end of line and insert 'Treasury shall appoint appropriate representative bodies within the financial services industry to nominate representatives to the Practitioner Panel, comprising'.

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

Page 4, line 15 [Clause 8], leave out 'as it considers appropriate'.

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

236

Page 4, line 15, [Clause 8], at end insert—

'(6) Before appointing any person to the Practitioner Panel the Authority must consult persons representing the interests of practitioners, as it considers appropriate, with a view to identifying candidates for appointment to the Practitioner Panel.'.

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

195

Page 5, line 19 [Clause 11], at end insert—

'(2A) Subsection (1) does not apply to any document which a person could not be compelled to give or produce in civil proceedings before the court or which has been supplied to the Authority by or on behalf of that person subject to a condition that such document and its contents shall not be disclosed by the Authority to any other person.'