| Previous Section | Index | Home Page |
New Clause 25
Codes: procedure
".--(1) Before issuing a code under section 96, the Authority must publish a draft of the proposed code 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--
(a) a cost benefit analysis; and
(b) notice that representations about the proposal may be made to the Authority within a specified time.
(3) Before issuing the proposed code, the Authority must have regard to any representations made to it in accordance with subsection (2)(b).
(4) If the Authority issues the proposed code it must publish an account, in general terms, of--
(a) the representations made to it in accordance with subsection (2)(b); and
(b) its response to them.
(5) If the code differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant--
(a) the Authority must (in addition to complying with subsection (4)) publish details of the difference; and
(b) those details must be accompanied by a cost benefit analysis.
(6) Subsections (1) to (5) do not apply if the Authority considers that there is an urgent need to publish the code.
(7) Neither subsection (2)(a) nor subsection (5)(b) applies if the Authority considers--
(a) that, making the appropriate comparison, there will be no increase in costs; or
(b) that, making that comparison, there will be an increase in costs but the increase will be of minimal significance.
(8) The Authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
(9) This section also applies to a proposal to alter or replace a code.
(10) "Cost benefit analysis" means an estimate of the costs together with an analysis of the benefits that will arise--
(a) if the proposed code is issued; or
(b) if subsection (5)(b) applies, from the code that has been issued.
(11) "The appropriate comparison" means--
(a) in relation to subsection (2)(a), a comparison between the overall position if the code is issued and the overall position if it is not issued;
(b) in relation to subsection (5)(b), a comparison between the overall position after the issuing of the code and the overall position before it was issued.".--[Miss Melanie Johnson.]
Brought up, read the First and Second time, and added to the Bill.
Brought up, read the First and Second time, and added to the Bill.
Brought up, read the First and Second time, and added to the Bill.
Brought up, read the First and Second time, and added to the Bill.
Brought up, and read the First time.
Mr. Timms:
I beg to move, That the clause be read a Second time.
Mr. Deputy Speaker:
With this it will be convenient to discuss the following: amendment No. 198, in clause 17, page 8, line 4, leave out
and insert--
Government amendments Nos. 67, 406, 77 to 80, 84, 116, 156, 421 and 422.
Amendment No. 36, in clause 364, page 190, line 29, after "State," insert--
Government amendments Nos. 423 and 424.
Amendment No. 184, in page 190, line 33, leave out "in any EEA State" and insert--
Government amendments Nos. 425, 426 and 429.
Mr. Timms:
This large group of amendments brings together three important issues, which relate to the scope of regulation: the business test; the territorial scope of regulation; and exemptions from the general prohibition.
The amendments would introduce a form of business test in the Bill, and allow the Treasury to make orders, which amend the application of the business test when appropriate. The Government have been thinking along lines similar to the Opposition's in introducing changes to include the business test in the Bill.
Government amendment No. 406 would introduce the business test to the Bill. It would change clause 20 so that, to be classified as a "regulated activity", an activity must, among other criteria, be undertaken by way of business.
Under new clause 33, the Treasury may provide for the circumstances in which a person who would otherwise be regarded as undertaking a regulated activity by way of business would be deemed not to be doing that. An order under the new clause may apply generally to all activities, a specified category of regulated activities, or a particular regulated activity.
Amendment No. 198 proposes changes to clause 17 so that it reads:
Amendment No. 422 would make one main change to clause 364. It would cut back the application of the clause on a subject on which the previous drafting partly exceeded the requirements of the directives. That is tackled primarily by providing that the first case specified in the clause will apply where a person: has his registered office, or head office, in the United Kingdom; carries on a regulated activity in another European economic area state; and exercises rights under a single market directive as a UK firm.
Firms that would currently fall outside the scope of the first case--essentially firms that are not passporting under the directives--may instead be treated under another case set out in the clause.
Amendments Nos. 421, 423 and 426 would make consequential drafting changes to clause 364, flowing from amendment No. 422. Amendment No. 425 is a clarifying amendment.
Amendments Nos. 36 and 184 cover territory similar to the Government amendments. I hope that the Opposition are satisfied that they do not need to press them.
Finally, some amendments deal with the implications of being exempt. Currently, the Bill is drafted on the assumption that an exempt person will not also be an authorised person. However, it is silent on whether an exempt person may become authorised. That should be possible.
An exemption enjoyed by virtue of clause 34--clause 35 in the case of appointed representatives--will often extend only to a limited range of regulated activities. A person exempt under those provisions should have the option to become authorised in order to extend the range of regulated activities he carries on. That option is subject to his meeting the qualifying or threshold conditions in schedule 6.
Once authorised, a person's exempt status ceases. His part IV permission must cover all his activities. Customers are entitled to assume that all the regulated activities carried on by a person are covered by the authorisation and subject to the necessary rules and disciplinary procedures, and that the compensation scheme will apply. If that were not the case, customers would be at greater risk when dealing with an authorised person who was also partially exempt than they would be when dealing with another authorised person who did not enjoy any exemption.
To give effect to that proposition, an exempt person can apply for a part IV permission. If that is granted, he becomes an authorised person and the exemption ceases. Amendment No. 67 makes it clear that a person must be either authorised or exempt to carry on a regulated activity. The new permission can cover the formerly exempt business, so long as the qualifying conditions in schedule 6 are satisfied.
Amendment No. 84 provides that if a person is exempt as a result of an exemption order, any application for part IV permission will be taken to include application for
permission for those activities with respect to which he was previously exempt. If an activity that the now-authorised person could have carried on within the scope of the exemption is not covered by the part IV permission, that person cannot continue to carry it on without contravening clause 18.
Assuming that an activity previously carried on within the scope of an exemption is covered by the part IV permission, it is treated in exactly the same way as any other regulated activity carried on by the relevant person. If the part IV permission is cancelled or surrendered, the person will cease to be authorised under clause 30. The previous exemption will apply again, unless it has been repealed or the person no longer meets a criterion necessary to qualify for it.
".--(1) Before issuing a statement of policy under section 99, 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, the Authority must have regard to any representations made to it in accordance with subsection (2).
(4) If the Authority issues the proposed statement 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 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 alter or replace a statement.".--[Miss Melanie Johnson.]
".--(1) Before issuing a statement under section 185, 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, the Authority must have regard to any representations made to it in accordance with subsection (2).
(4) If the Authority issues the proposed statement 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 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 alter or replace a statement.".--[Miss Melanie Johnson.]
".--(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.".--[Miss Melanie Johnson.]
".--(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;
(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).".--[Mr. Timms.]
"a regulated activity in the United Kingdom"
"one or more regulated activities in the United Kingdom as a business".
"in exercise of an EEA right".
"(i) in any EEA State; or
(ii) in exercise of an EEA right;".
"No person may carry on one or more regulated activities in the United Kingdom as a business".
I hope that, in the light of the Government's proposed amendments, Opposition Members will not want to press the amendment.
| Next Section
| Index | Home Page |