69

House of Commons

Tuesday 4th November 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].

Ian Pearson

87

Clause  2,  page  2,  line  28,  at end insert—

‘( )	Where a stabilisation power is exercised in respect of a bank, it does not cease to

be a bank for the purposes of this Part if it later loses the permission referred to

in subsection (1).’.

Ian Pearson

88

Clause  3,  page  3,  line  1,  leave out from ‘assistance”’ to end of line 2 and insert ‘has

the meaning given by section [“Financial assistance”].’.

Mr Mark Hoban

77

Clause  4,  page  3,  line  19,  at end insert ‘; and for the avoidance of doubt, this

includes ensuring—

(i)	continuity of service; and

(ii)	unrestricted access to deposits.’.

Public Bill Committee: 4th November 2008

70

Banking Bill, continued

Mr Colin Breed

Dr John Pugh

74

Clause  4,  page  3,  line  19,  at end insert—

‘(6A)

Objective 3A is to protect and safeguard the value of the enterprise.’.

Mr Mark Hoban

78

Clause  4,  page  3,  line  20,  at end insert ‘and to ensure that the expenditure of any

public or private funds is done in an economically efficient manner.’.

Mr Mark Hoban

76

Clause  4,  page  3,  line  22,  at end insert—

‘(8A)

Objective 6 is to protect the interest of creditors.

(8B)	Objective 7 is to avoid distorting competition amongst banks.’.

Mr Mark Hoban

79

Clause  4,  page  3,  line  24,  at end add—

‘(10)

In respect of Objective 7, competition law shall apply to a bank, whether it is

wholly or partly owned or controlled by the Government, including a bank to

which sections 9 and 12 apply.

(11)	Where a bank is wholly or partly owned or controlled by the Government and

where section 214 applies, the bank is prohibited from using its favourable

position or Government support to its commercial advantage and thereby to

prevent, restrict or distort competition in the market for financial services as a

whole, or on a product by product basis.

(12)	For the purposes of subsection (10) competition law includes the provisions of the

Competition Act 1998 and the Enterprise Act 2002, and European Community

law competition provisions.

(13)	For the purposes of subsections (10) and (11) ownership or control shall be

determined by reference to sections 26 and 29 of the Enterprise Act 2002 and by

reference, where Community law applies, to the Council Regulation 130/2004

(the European Merger Regulations).’.

Mr Mark Hoban

81

Clause  5,  page  3,  line  35,  at end insert—

‘(ca)

how to determine whether the threshold conditions under section 41(1)

of the Financial Services and Markets Act 2000 will be breached,’.

Ian Pearson

89

Clause  5,  page  3,  line  39,  leave out paragraph (f).

Mr Mark Hoban

80

Clause  5,  page  4,  line  3,  leave out ‘have regard to the code’ and insert ‘comply with

the code or publish an explanation of why they were unable to comply with the code in

Public Bill Committee: 4th November 2008

71

Banking Bill, continued

good time after their actions,’.

Mr Mark Hoban

82

Clause  6,  page  4,  line  11,  leave out ‘and’.

Mr Mark Hoban

83

Clause  6,  page  4,  line  14,  at end insert ‘, and

(d)	those persons whom it considers to have relevant knowledge of those

matters.’.

Mr Mark Hoban

85

Clause  6,  page  4,  line  17,  at end insert ‘only after complying with the requirements

set out in subsection (1).’.

Mr Mark Hoban

84

Clause  6,  page  4,  line  18,  at end add—

‘(5)	The code shall not come into force unless it has been approved by a resolution of

each House of Parliament.’.

Mr Colin Breed

Dr John Pugh

Mr Mark Hoban

75

Clause  7,  page  4,  line  27,  leave out ‘not reasonably likely’ and insert ‘highly

unlikely’.

Mr Mark Hoban

86

Clause  7,  page  4,  line  38,  leave out subsection (6).

Ian Pearson

90

Clause  12,  page  7,  leave out line 4.

Ian Pearson

91

Clause  12,  page  7,  line  5,  leave out ‘transferees under share transfer orders’ and

Public Bill Committee: 4th November 2008

72

Banking Bill, continued

insert ‘banks taken into temporary public ownership under this section’.

Mr Peter Bone

113

Clause  16,  page  8,  line  10,  at end insert—

‘(3A)

Subsection (3) has effect notwithstanding any provision in European Union law.’.

Ian Pearson

92

Clause  25,  page  11,  line  23,  at end insert ‘—

(a)	provides for the transfer of securities which were issued by the bank

before the original instrument and have not been transferred by the

original instrument or another supplemental share transfer instrument;

(b)

’.

Ian Pearson

93

Clause  26,  page  12,  line  2,  leave out paragraph (a) and insert—

‘(a)	provides for the transfer of securities which were issued by the bank

before the original order and have not been transferred by the original

order or another supplemental share transfer order;’.

Ian Pearson

94

Clause  26,  page  12,  line  18,  leave out ‘10(2)’ and insert ‘12(2)’.

Ian Pearson

95

Clause  27,  page  12,  line  25,  leave out paragraph (a) and insert—

‘(a)	provides for the transfer of—

(i)	securities which were issued by the bank before the original

order and have been transferred by the original order or a

supplemental share transfer order, or

(ii)	securities which were issued by the bank after the original

order;’.

Public Bill Committee: 4th November 2008

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Banking Bill, continued

Mr Peter Bone

114

Clause  31,  page  14,  line  7,  at end insert—

‘(3A)

Subsection (3) has effect notwithstanding any provision in European Union law.’.

Ian Pearson

96

Clause  39,  page  17,  line  39,  leave out subsection (5).

Ian Pearson

97

Clause  41,  page  19,  line  4,  leave out subsection (4).

Ian Pearson

98

Clause  44,  page  21,  line  6,  leave out ‘establishing a scheme for’.

Ian Pearson

99

Clause  44,  page  21,  line  7,  leave out ‘determining’ and insert ‘establishing a

scheme for determining’.

Ian Pearson

100

Clause  44,  page  21,  line  7,  after ‘compensation,’, insert ‘or providing for

transferors to be paid compensation,’.

Ian Pearson

101

Clause  44,  page  21,  line  8,  at beginning insert ‘establishing a scheme for’.

Ian Pearson

102

Clause  48,  page  22,  line  13,  at end insert—

‘(aa)

the Treasury makes a reverse share transfer order under section [Reverse

share transfer],’.

Ian Pearson

103

Clause  48,  page  22,  line  15,  at end insert—

Public Bill Committee: 4th November 2008

74

Banking Bill, continued

‘(ba)

the Bank of England makes a bridge bank reverse share transfer

instrument under section [Bridge bank: reverse share transfer],’.

Ian Pearson

104

Clause  48,  page  22,  line  17,  leave out ‘or’ and insert—

‘(ca)

the Bank of England makes a reverse property transfer instrument under

section [Reverse property transfer],’.

Ian Pearson

105

Clause  48,  page  22,  line  18,  at end insert—

‘, or

(da)	the Treasury make a reverse property transfer order under section

[Temporary public ownership: reverse property transfer],’.

Ian Pearson

106

Clause  49,  page  22,  line  23,  leave out ‘must’ and insert ‘may’.

Ian Pearson

107

Clause  49,  page  22,  line  25,  at end insert ‘; and subsections (2) to (5) apply to an

order which includes provision for an independent valuer.’.

Ian Pearson

108

Clause  51,  page  23,  line  38,  leave out ‘and’.

Ian Pearson

109

Clause  51,  page  23,  line  39,  at end insert ‘, and—

(d)	monitors.’.

Mr David Gauke

Mr Mark Hoban

115

Clause  52,  page  24,  line  26,  at end insert—

‘(e)	to act fairly’.

Mr Colin Breed

Dr John Pugh

72

Clause  52,  page  24,  line  28,  leave out from ‘must’ to end of line 31 and insert ‘take

into account such financial assistance provided by the Bank of England or the Treasury

as would have been likely to have been provided to the bank if the SRR powers had not

Public Bill Committee: 4th November 2008

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Banking Bill, continued

been invoked.’.

Ian Pearson

110

Clause  53,  page  25,  line  8,  at end insert—

‘(2A)

A resolution fund order may include provision for—

(a)	an independent valuer to make a determination under the order (in which

case sections 49(2) to (5), 50 and 51 shall apply);

(b)	valuation principles to be applied in making a determination (in which

case section 52(2) shall apply).’.

Mr David Gauke

Mr Mark Hoban

116

Clause  53,  page  25,  line  31,  at end insert—

‘(7)	A resolution fund order and any action taken as a consequence of subsection (3)

must be consistent with fairness.’.

Mr David Gauke

Mr Mark Hoban

117

Clause  54,  page  25,  line  35,  leave out ‘persons other than a transferor’ and insert

‘pre-transfer creditors and shareholders’.

Ian Pearson

111

Clause  54,  page  25,  line  40,  leave out ‘and 50’ and insert ‘to 51’.

Mr David Gauke

Mr Mark Hoban

118

Clause  55,  page  26,  line  35,  at end insert—

‘(d)	to be determined fairly.’.

Ian Pearson

112

Clause  56,  page  27,  line  6,  after ‘order’, insert—

‘(a)	shall be made by statutory instrument, and

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Revised 4 November 2008