47

House of Commons

Thursday 30th 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].

Ian Pearson

28

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

or other financial institution’.

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).

Public Bill Committee: 30th October 2008

48

Banking Bill, continued

Mr Mark Hoban

58

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

Mr Mark Todd

48

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

Mr Mark Todd

49

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

strategy’.

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.

(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 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

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’.

Public Bill Committee: 30th October 2008

49

Banking Bill, continued

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 Todd

53

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

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 Hoban

69

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

Mr Mark Hoban

60

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

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 Hoban

71

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

Mr Mark Todd

55

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

Public Bill Committee: 30th October 2008

50

Banking Bill, continued

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.”’.

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;

Public Bill Committee: 30th October 2008

51

Banking Bill, continued

(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’.

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.’.

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—

Public Bill Committee: 30th October 2008

52

Banking Bill, continued

‘(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,’.

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

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—

Public Bill Committee: 30th October 2008

53

Banking Bill, continued

‘(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).

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

been invoked.’.

Ian Pearson

12

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

Mr Colin Breed

Dr John Pugh

73

Page  32,  line  7,  leave out Clause 65.

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.”’.

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Revised 30 October 2008