33

House of Commons

Tuesday 28th 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 David Gauke

Mr Mark Hoban

46

Clause  171,  page  88,  line  18,  at end add—

‘(3)	The Treasury may make a recognition order in respect of an inter-bank payment

system only if the system is eligible for designation under the Financial Markets

and Insolvency (Settlement Finality) Regulations 1999.’.

Mr David Gauke

Mr Mark Hoban

47

Clause  171,  page  88,  line  18,  at end add—

‘(3)	The Treasury may make a recognition order in respect of an inter-bank payment

system only if the system has been designated under the Financial Markets and

Insolvency (Settlement Finality) Regulations 1999.’.

Ian Pearson

19

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

Public Bill Committee: 28th October 2008

34

Banking Bill, continued

Mr David Gauke

Mr Mark Hoban

39

Clause  180,  page  90,  line  34,  at end insert ‘acting reasonably’.

Mr David Gauke

Mr Mark Hoban

40

Clause  181,  page  91,  line  4,  after ‘it’, insert ‘reasonably’.

Mr David Gauke

Mr Mark Hoban

41

Clause  180,  page  91,  line  9,  after ‘assist’, insert ‘substantially’.

Mr David Gauke

Mr Mark Hoban

42

Clause  185,  page  91,  line  33,  after ‘England’, insert ‘reasonably’.

Mr David Gauke

Mr Mark Hoban

43

Clause  185,  page  91,  line  33,  leave out ‘think’ and insert ‘thinks’.

Mr David Gauke

Mr Mark Hoban

44

Clause  190,  page  93,  line  31,  after ‘Bank’, insert ‘reasonably’.

Mr David Gauke

Mr Mark Hoban

45

Clause  190,  page  93,  line  33,  after ‘otherwise’, insert ‘reasonably’.

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: 28th October 2008

35

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: 28th October 2008

36

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).

Mr Mark Todd

48

Clause  216,  page  103,  line  9,  leave out ‘, consulting the Treasury, determine and’.

Mr Mark Hoban

58

Clause  216,  page  103,  leave out lines 9 to 11.

Mr Mark Todd

49

Clause  216,  page  103,  line  11,  at end insert ‘and monitor the delivery of that

strategy’.

Mr Mark Todd

50

Clause  216,  page  103,  line  13,  leave out from ‘a’ to ‘consisting’ in line 14 and

insert ‘Financial Stability Committee’.

Mr Mark Hoban

59

Clause  216,  page  103,  leave out lines 13 to 19 and insert—

‘(1)	There shall be a committee of the Bank, known as the Financial Stability

Committee of the Bank of England, consisting of—

(a)	the Governor and Deputy Governor of the Bank,

(b)	two members appointed by the Governor of the Bank after consultation

with the Chancellor of the Exchequer, and

(c)	four members appointed by the Chancellor of the Exchequer.

(2)	Of the two members appointed under subsection (1)(b)—

(a)	one shall be a person who has executive responsibility within the Bank

for financial stability analysis, and

(b)	the other shall be a person who has executive resopnsibility within the

Bank for financial stability operations.

Public Bill Committee: 28th October 2008

37

Banking Bill, continued

(3)	The Chancellor of the Bank of England shall only appoint a person under

subsection (1)(c) if he is satisfied that the person has knowledge or experience

which is likely to be relevant to the Committee’s functions and after consultation

with the Governor of the Bank.

(4)	The Treasury Committee of the House of Commons may hold an inquiry into any

appointment made under subsection (1)(c).’.

Mr Mark Hoban

68

Clause  216,  page  103,  line  14,  leave out from ‘of’ to end of line 19 and insert ‘8

non-executive directors of the Bank appointed by the chair of the court of directors

(designated under paragraph 13 of Schedule 1).’.

Mr Mark Todd

51

Clause  216,  page  103,  line  17,  at end insert ‘two other executives of the Bank

appointed by the Treasury, and’.

Mr Mark Todd

52

Clause  216,  page  103,  line  18,  leave out from ‘4’ to end of line 19 and insert ‘other

members appointed by the Treasury following a transparent appointment process

overseen by the Commissioner for Public Appointments.

(1A)	A person appointed under subsection (1)(c)—

(a)	must not be an executive of the Bank or a member of the court of

directors of the Bank;

(b)	must not be an active participant in financial markets;

(c)	should have recent experience of financial markets, knowledge of legal

or accountancy matters relevant to the special resolution regime under

the Banking Act 2008, and international experience.’.

Mr Mark Hoban

62

Clause  216,  page  103,  line  21,  leave out from first ‘to’ to ‘implementation’ in line

22 and insert ‘decide upon the’.

Mr Mark Hoban

70

Clause  216,  page  103,  line  21,  leave out from first ‘to’ to first ‘the’ in line 22 and

insert ‘monitor’.

Mr Mark Todd

53

Clause  216,  page  103,  leave out lines 21 to 23.

Mr Mark Hoban

60

Clause  216,  page  103,  line  24,  leave out ‘give advice about’ and insert ‘decide’.

Mr Mark Hoban

69

Clause  216,  page  103,  leave out lines 24 to 29.

Public Bill Committee: 28th October 2008

38

Banking Bill, continued

Mr Mark Hoban

61

Clause  216,  page  103,  line  27,  leave out ‘give advice about’ and insert ‘decide’.

Mr Mark Todd

54

Clause  216,  page  103,  leave out lines 30 to 32.

Mr Mark Todd

55

Clause  216,  page  103,  line  33,  leave out ‘court of directors’ and insert ‘Treasury’.

Mr Mark Hoban

71

Clause  216,  page  103,  leave out lines 33 to 35.

Mr Mark Todd

Mr Mark Hoban

56

Clause  216,  page  103,  leave out lines 42 to 43.

Mr Mark Hoban

64

Clause  216,  page  103,  line  43,  at end insert—

‘(6)	Proceedings of the Committee shall be made public in good time unless

disclosure of the proceedings would result in a threat to financial stability.’.

Mr Mark Todd

57

Clause  216,  page  104,  line  16,  leave out ‘to (e)’ and insert ‘or (c)’.

Mr Mark Hoban

63

Clause  216,  page  104,  line  23,  at end add—

‘(3)	At the end of section 2(1) of the Bank of England Act 1998 insert “and the

Financial Stability Objective”’.

Mr Mark Hoban

65

Clause  221,  page  105,  line  24,  at beginning insert—

‘(A1)

In paragraph 1 of Schedule 1 to the Bank of England Act 1998 (Governor and

Deputies: appointment) for sub-paragraph (1) substitute—

“(1)	Appointment as Governor of the Bank shall be for a period of 8 years.

(1A)	Appointment of the Deputy Governor of the Bank shall be for a period

of 5 years.”’.

Public Bill Committee: 28th October 2008

39

Banking Bill, continued

Mr Mark Hoban

66

Clause  221,  page  105,  line  24,  leave out from first ‘of’ to ‘add’ in line 25 and insert

‘that paragraph of that Schedule’.

Mr Mark Hoban

67

Clause  221,  page  105,  line  26,  leave out ‘twice’ and insert ‘once’.

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’.

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—

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Revised 28 October 2008