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Consideration of Bill: 26th November 2008                

3711

 

Banking Bill, continued

 
 

Mr Chancellor of the Exchequer

 

51

 

Page  96,  line  42  [Clause  191],  at end insert—

 

‘(2)    

The Bank may publish details of a sanction imposed under sections 192 to 194.’.

 


 

Mr Chancellor of the Exchequer

 

52

 

Page  97  [Clause  193],  leave out line 9 and insert—

 

‘(a)    

threatens the stability of, or confidence in, the UK financial system, or

 

(b)    

has serious consequences for business or other interests throughout the

 

United Kingdom.’.

 


 

Mr Chancellor of the Exchequer

 

53

 

Page  98,  line  2  [Clause  195],  at end insert ‘or on another person’.

 

Mr Chancellor of the Exchequer

 

54

 

Page  98,  line  4  [Clause  195],  after ‘operator’, insert ‘or other person’.

 

Mr Chancellor of the Exchequer

 

55

 

Page  98,  line  5  [Clause  195],  after ‘operator’, insert ‘or other person’.

 

Mr Chancellor of the Exchequer

 

56

 

Page  98,  line  5  [Clause  195],  leave out ‘and’.

 

Mr Chancellor of the Exchequer

 

57

 

Page  98,  line  6  [Clause  195],  at end insert—

 

    

‘, and

 

(d)    

as soon as is reasonably practicable, give the operator or other person a

 

notice stating whether or not the Bank intends to impose the sanction.’.

 

Mr Chancellor of the Exchequer

 

58

 

Page  98,  line  8  [Clause  195],  leave out ‘191’ and insert ‘191(1)’.

 

Mr Chancellor of the Exchequer

 

59

 

Page  98,  line  17  [Clause  196],  leave out subsections (1) and (2) and insert—

 

‘(1)    

Where the Bank of England notifies a person under section 195(1)(d) that the

 

Bank intends to impose a sanction, the person may appeal to the Financial

 

Services and Markets Tribunal.


 
 

Consideration of Bill: 26th November 2008                

3712

 

Banking Bill, continued

 
 

(2)    

Where the Bank of England imposes a sanction on a person without notice in

 

reliance on section 195(3), the person may appeal to the Financial Services and

 

Markets Tribunal.’.

 

Mr Chancellor of the Exchequer

 

60

 

Page  98,  line  29  [Clause  196],  leave out paragraph (b) and insert—

 

‘(b)    

for section 133(9) of that Act substitute the proposition that a sanction

 

may not be imposed while an appeal could be brought or is pending.’.

 


 

Mr Chancellor of the Exchequer

 

61

 

Page  104,  line  9  [Clause  212],  after ‘of’, insert—

 

‘(a)    

’.

 

Mr Chancellor of the Exchequer

 

62

 

Page  104,  line  10  [Clause  212],  at end insert—

 

‘(b)    

details of anything done in contravention of this Part or banknote

 

regulations or rules;

 

(c)    

details of action taken under sections 215 to 218 (which may include

 

details of the reason for the action and its result).’.

 

Mr Chancellor of the Exchequer

 

63

 

Page  104,  line  35  [Clause  214],  leave out subsection (3) and insert—

 

‘(3)    

A right to rely on section 207 cannot be transferred by or acquired from an

 

authorised bank (and, in particular, cannot be acquired by virtue of or in

 

connection with anything done under Part 1).’.

 


 

Mr Mark Hoban

 

15

 

Page  107,  line  19  [Clause  222],  leave out ‘or other financial institution’.

 

Mr Chancellor of the Exchequer

 

64

 

Page  107,  line  22  [Clause  222],  leave out from ‘assistance”’ to end of line 23 and

 

insert ‘has the meaning given by section 244.’.

 

Mr Mark Hoban

 

16

 

Page  107,  line  28  [Clause  223],  leave out ‘or other financial institution’.

 



 
 

Consideration of Bill: 26th November 2008                

3713

 

Banking Bill, continued

 
 

Mr Mark Hoban

 

18

 

Page  108,  line  21  [Clause  225],  at end insert—

 

‘(3)    

In doing so, the court of directors must have regard to the guidance on financial

 

stability given in the code of practice issued in accordance with section 5.’.

 


 

Mr Chancellor of the Exchequer

 

65

 

Page  111,  line  37  [Clause  233],  at end insert—

 

‘(ba)    

the scheme manager of the Financial Services Compensation Scheme

 

(established under Part 15 of the Financial Services and Markets Act

 

2000);’.

 


 

Mr Chancellor of the Exchequer

 

66

 

Page  113,  line  36  [Clause  238],  at end insert—

 

‘(7)    

In this section, “financial assistance” has the meaning given by section 244.’.

 

Mr Chancellor of the Exchequer

 

67

 

Page  113,  line  36  [Clause  238],  at end insert—

 

‘(7)    

The Treasury may by order create exceptions to or otherwise modify the effect of

 

section 9B of the Building Societies Act 1986 (restriction on creation of floating

 

charges); and—

 

(a)    

the Treasury may make an order only if they think it is likely to help

 

building societies to use, give effect to or take advantage of financial

 

assistance of the kind specified in subsection (1),

 

(b)    

an order may have effect in relation to transactions between building

 

societies and persons not listed in subsection (1),

 

(c)    

an order shall be made by statutory instrument, and

 

(d)    

an order may not be made unless a draft has been laid before and

 

approved by resolution of each House of Parliament.’.

 

Mr Chancellor of the Exchequer

 

68

 

Page  113,  line  39  [Clause  239],  leave out ‘entitled to’ and insert ‘interested in’.

 

Mr Chancellor of the Exchequer

 

69

 

Page  113,  line  43  [Clause  239],  at end insert—

 

‘(2)    

The reference in subsection (1) to Part 25 of the Companies Act 2006 includes a

 

reference to—

 

(a)    

Part 12 of the Companies Act 1985 (which has effect until the

 

commencement of Part 25 of the 2006 Act),

 

(b)    

Part 13 of the Companies (Northern Ireland) Order 1986 (which has

 

effect until the commencement of Part 25 of the 2006 Act), and


 
 

Consideration of Bill: 26th November 2008                

3714

 

Banking Bill, continued

 
 

(c)    

any provision about registration of charges made under section 1052 of

 

the Companies Act 2006 (overseas companies).’.

 


 

Mr Chancellor of the Exchequer

 

70

 

Page  117,  line  30  [Clause  246],  at end insert “(which are subject to subsections (4)

 

to (6)).”.

 


 

Mr Chancellor of the Exchequer

 

71

 

Page  119,  line  9  [Clause  246],  at end insert—

 

‘167

Borrowing from National Loans

Negative resolution’.

 
  

Fund

  
 

Mr Chancellor of the Exchequer

 

72

 

Page  119,  line  25  [Clause  246],  at end insert—

 

‘(4)    

A power listed in subsection (5) may be exercised without a draft being laid

 

before and approved by resolution of each House of Parliament if—

 

(a)    

the power is being exercised for the first time, and

 

(b)    

the person exercising it is satisfied that it is necessary to exercise it

 

without laying a draft for approval.

 

(5)    

The powers are those in—

 

(a)    

section 2 (special resolution regime: meaning of “bank”),

 

(b)    

section 47 (special resolution regime: partial transfers),

 

(c)    

section 48 (special resolution regime: protection of interests),

 

(d)    

section 60 (special resolution regime: third party compensation),

 

(e)    

section 82 (special resolution regime: building societies: consequential),

 

(f)    

section 85 (meaning of “bank”),

 

(g)    

section 116 (bank insolvency: application of insolvency law),

 

(h)    

section 124 (bank insolvency: building societies),

 

(i)    

section 129 (bank insolvency: consequential provision),

 

(j)    

section 143 (bank administration: multiple original transfers),

 

(k)    

section 146 (bank administration: transfer from temporary public

 

ownership),

 

(l)    

section 150 (bank administration: application of other law),

 

(m)    

section 152 (bank administration: building societies),

 

(n)    

section 162 (bank administration: consequential provision), and

 

(o)    

section 165 (Financial Services Compensation Scheme: special

 

resolution regime).

 

(6)    

Where an instrument is made in reliance on subsection (5)—

 

(a)    

it shall lapse unless approved by resolution of each House of Parliament

 

during the period of 28 days (ignoring periods of dissolution, prorogation


 
 

Consideration of Bill: 26th November 2008                

3715

 

Banking Bill, continued

 
 

or adjournment of either House for more than 4 days) beginning with the

 

day on which the instrument is made,

 

(b)    

the lapse of an instrument under paragraph (a) does not invalidate

 

anything done under or in reliance on it before its lapse and at a time

 

when neither House has declined to approve it, and

 

(c)    

the lapse of an instrument under paragraph (a) does not prevent the

 

making of a new one.’.

 


 

Mr Chancellor of the Exchequer

 

73

 

Page  121,  line  20  [Clause  250],  at beginning insert ‘The preceding provisions of’.

 

 

Order of the House [14th OCTOBER 2008]

 

That the following provisions shall apply to the Banking Bill:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 18th November 2008.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Consideration and Third Reading

 

4.    

Proceedings on consideration shall (so far as not previously concluded) be

 

brought to a conclusion one hour before the moment of interruption on the

 

day on which those proceedings are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on consideration and Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill (including any proceedings on

 

consideration of Lords Amendments or on any further messages from the

 

Lords) may be programmed.

 

 

Banking Bill (programme) (No. 2)

 

Mr Chancellor of the Exchequer

 

That the Order of 14th October 2008 (Banking Bill (Programme)) be varied as follows:

 

 

1.    

Paragraphs 4 and 5 of the Order shall be omitted.

 

2.    

Proceedings on consideration shall (so far as not previously concluded) be


 
 

Consideration of Bill: 26th November 2008                

3716

 

Banking Bill, continued

 
 

brought to a conclusion three hours after the commencement of proceedings

 

on the Motion for this Order.

 


 
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Revised 26 November 2008