19

House of Commons

Thursday 23rd October 2008

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Banking Bill

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Note

The Amendments have been arranged in accordance with the Order of the

Committee [21st October].

Mr Mark Hoban

34

Clause  156,  page  81,  line  4,  after ‘the’, insert ‘Authority to make rules enabling

the’.

Mr Mark Hoban

Mr David Gauke

2

Clause  156,  page  81,  line  6,  after ‘expenses’, insert ‘relating to the powers

exercisable under sections 10 to 12 and Parts 2 and 3 of the Banking Act 2008’.

Mr Mark Hoban

35

Clause  156,  page  81,  leave out lines 7 to 9 and insert—

‘(2)	Rules made by the Authority may make provision about the establishment and

management of contingency funds provided that such rules are limited to the

deposit protection element of the compensation scheme; in particular, the rules

may make provision about—’.

Mr Mark Hoban

Mr David Gauke

1

Clause  156,  page  81,  line  12,  leave out from first ‘the’ to end of line 13 and insert

‘contributions payable by banks and building societies’.

Public Bill Committee: 23rd October 2008

20

Banking Bill, continued

Mr Mark Hoban

Mr David Gauke

3

Clause  156,  page  81,  line  16,  leave out ‘classes of person’ and insert ‘banks and

building societies’.

Mr Mark Hoban

36

Clause  156,  page  81,  line  20,  at end insert ‘and ensuring that no such investment

shall cause there to be a prevention, restriction or distortion of competition in the relevant

lending market;’.

Mr Mark Hoban

Mr David Gauke

8

Clause  156,  page  81,  line  23,  after ‘compensation’, insert ‘for depositors’.

Mr Mark Hoban

Mr David Gauke

5

Clause  156,  page  81,  line  27,  at end insert—

‘(2A)

In making any provision by virtue of subsection (2)(c) the Treasury must take

account of the desirability of ensuring that the amount of the levies imposed on a

particular class of authorised person reflects, so far as practicable, the amounts of

claims made, in respect of that class of person.’.

Mr Mark Hoban

Mr David Gauke

6

Clause  156,  page  81,  line  27,  at end insert—

‘(2A)

The amount of payments into the funds by virtue of subsection (2)(d) may vary

between persons in each class.’.

Mr Mark Hoban

37

Clause  159,  page  83,  line  30,  after ‘loan,’, insert ‘which shall not be higher than the

Bank of England base rate,’.

Mr Mark Hoban

38

Clause  159,  page  83,  line  31,  after ‘conditions’, insert ‘which shall ensure that

repayment of the loan is made on a fair basis.’.

Ian Pearson

18

Clause  159,  page  83,  line  36,  at end insert ‘(and the regulations may have effect

despite any provision of this Act);’.

Public Bill Committee: 23rd October 2008

21

Banking Bill, continued

Mr Mark Hoban

Mr David Gauke

4

Clause  159,  page  83,  line  37,  leave out ‘classes of person’ and insert ‘banks and

building societies’.

Mr Mark Hoban

Mr David Gauke

7

Clause  159,  page  83,  line  38,  at end insert—

‘(4A)

In making any provision by virtue of subsection (4)(c) the Treasury must take

account of the desirability of ensuring that the amount of the levies imposed on a

particular class of authorised person reflects, so far as practicable, the amount of

claims made, in respect of that class of person.’.

Mr Colin Breed

Dr John Pugh

Dr Vincent Cable

10

Clause  165,  page  86,  line  27,  at end insert—

‘(4)	Any scheme agent who reneges on their contract of employment will be subject

to a penalty.

(5)	The Chancellor of the Exchequer may make such regulations as are necessary for

the establishment of a penalty.

(6)	The power to make regulations under subsection (5) is exercisable by statutory

instrument.

(7)	A statutory instrument containing regulations under subsection (5) may not be

made unless a draft of it has been laid before and approved by resolution of the

House of Commons.’.

Ian Pearson

19

Clause  173,  page  89,  line  11,   after ‘recognised’, insert ‘inter-bank’.

Ian Pearson

20

Clause  190,  page  94,  line  7,  at end insert—

‘(4A)

Subsection (4)—

(a)	overrides a contractual or other requirement to keep information in

confidence, and

Public Bill Committee: 23rd October 2008

22

Banking Bill, continued

(b)	is without prejudice to any other power to disclose information.’.

Ian Pearson

21

Clause  203,  page  98,  line  7,  leave out ‘processes’.

Ian Pearson

22

Clause  203,  page  98,  line  8,  leave out ‘an insolvency process’ and insert

‘insolvency’.

Ian Pearson

23

Clause  203,  page  98,  line  18,  leave out ‘“insolvency process” means’ and insert ‘a

reference to “insolvency” includes a reference to’.

Ian Pearson

24

Clause  203,  page  98,  line  19,  leave out paragraph (a) and insert —

‘(a)	liquidation,’.

Ian Pearson

25

Clause  206,  page  99,  line  13,  leave out ‘an insolvency process’ and insert ‘a

provision about insolvency’.

Ian Pearson

26

Clause  206,  page  99,  line  27,  leave out ‘bank insolvency or insolvency’ and insert

‘insolvency (within the meaning of section 203(6))’.

Ian Pearson

27

Clause  206,  page  99,  line  34,  leave out ‘, to bank insolvency or to insolvency’.

Ian Pearson

28

Clause  214,  page  102,  line  9,  leave out ‘UK authorised institution’ and insert ‘bank

or other financial institution’.

Public Bill Committee: 23rd October 2008

23

Banking Bill, continued

Ian Pearson

29

Clause  214,  page  102,  line  15,  leave out paragraphs (b) and (c).

Ian Pearson

30

Clause  215,  page  102,  line  26,  leave out ‘UK authorised institution’ and insert

‘bank or other financial institution’.

Ian Pearson

31

Clause  215,  page  102,  line  28,  leave out subsection (2).

Ian Pearson

32

Clause  224,  page  106,  line  27,  at end insert—

‘(c)	an authority in a country or territory outside the United Kingdom which

exercises functions similar to those of the Treasury, the Bank of England

or the Financial Services Authority in relation to financial stability;

(d)	the European Central Bank.’.

Mr Mark Hoban

Mr David Gauke

9

Clause  226,  page  106,  line  39,  after ‘person’, insert ‘, in connection with the

exercise of functions by any person under the Banking Act 2008,’.

Dr John Pugh

Mr Colin Breed

Dr Vincent Cable

11

Clause  228,  page  107,  line  28,  leave out ‘or in any other way’.

Public Bill Committee: 23rd October 2008

24

Banking Bill, continued

Ian Pearson

12

Clause  65,  page  32,  line  22,   leave out subsection (5).

Ian Pearson

17

Clause  157,  page  83,  line  3,  at end insert—

‘(2)	At the end of section 223(3) of the Financial Services and Markets Act 2000

(management expenses) add “;

(c)	under section 214B.”’.

Ian Pearson

13

Clause  109,  page  57,  line  25,   leave out subsection (2).

Ian Pearson

14

Clause  122,  page  61,  line  26,   leave out ‘and an Act of the Scottish Parliament’.

Ian Pearson

15

Clause  143,  page  77,  line  11,   leave out subsection (2).

Ian Pearson

16

Clause  154,  page  80,  line  25,   leave out ‘and an Act of the Scottish Parliament’.

Ian Pearson

33

Clause  239,  page  115,  line  5,  leave out ‘section 231 extends’ and insert ‘sections

Public Bill Committee: 23rd October 2008

25

Banking Bill, continued

[Registration of charges: Scotland] and 231 extend’.

New Clauses

“Financial institution”

Ian Pearson

NC3

To move the following Clause:—

‘(1)	The Treasury may by order provide that a specified institution, or an institution

of a specified class, is or is not to be treated as a financial institution for the

purposes of section 214 or 215.

(2)

An order—

(a)	shall be made by statutory instrument, and

(b)	shall be subject to annulment in pursuance of a resolution of either House

of Parliament.’.

Registration of charges: Scotland

Ian Pearson

NC4

To move the following Clause:—

‘(1)	The Bankruptcy and Diligence etc. (Scotland) Act 2007 is amended as follows.

(2)	In section 38 (creation of floating charges)—

(a)	in subsection (3), after “to” insert “subsection (3A) and”, and

(b)	after that subsection insert—

“(3A)

If a floating charge is granted in favour of a central institution, it

is created only when the document granting the floating charge

is executed by the company granting the charge.”

(3)	In section 42 (assignation of floating charges), after subsection (3) add—

“(4)	This section does not apply where a floating charge is assigned (whether

in whole or to a specified extent) to or by a central institution.”

(4)	In section 43 (alteration of floating charges)—

(a)	in subsection (4), for “But paragraph” substitute “Paragraph”, and

(b)	after that subsection insert—

“(4A)

Paragraph (b) of subsection (3) above does not apply in respect

of an alteration if—

(a)	the holder of the floating charge is a central institution,

or

(b)	the holder of the floating charge is not a central

institution but the alteration is to be made in connection

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Revised 23 October 2008