House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Report Stage Proceedings: 26th November 2008
954

Banking Bill, continued

Mr Chancellor of the Exchequer

Agreed to  47

Page  88,  line  3  [Clause  165],  at end insert—

‘(5A)
Payments required to be made by the scheme by virtue of section [Special

resolution regime: compensation: Sources of compensation of the Banking Act

2008 (special resolution regime: compensation) shall be treated for the purposes

of subsection (4) as if required to be made under this section.

(5B)
The regulations may include provision for payments (including payments under

those provisions of the Banking Act 2008) to be made—

(a)
before verification in accordance with subsection (3)(b), and

(b)
before the calculation of the limit imposed by subsection (4), by

reference to estimates of that limit and subject to any necessary later

adjustment.’.

Mr Chancellor of the Exchequer

Agreed to  48

Page  88,  line  11  [Clause  165],  leave out ‘contributions’ and insert ‘payments’.

Mr Chancellor of the Exchequer

Agreed to  49

Page  95,  line  19  [Clause  186],  at end insert—

‘(2)
Before taking action under this Part in respect of a recognised inter-bank payment

system the operator of which satisfies section 180(2), the Bank of England must

consult the FSA.

(3)
If the FSA gives the Bank of England notice that the FSA is considering taking

action in respect of the operator of a recognised inter-bank payment system who

satisfies section 180(2), the Bank may not take action under this Part in respect of

the operator unless—

(a)
the FSA consents, or

(b)
the notice is withdrawn.’.

Mr Chancellor of the Exchequer

Agreed to  50

Page  96,  line  17  [Clause  188],  at end insert—

‘(8)
In the application of this section to Scotland—

(a)
the reference to a justice of the peace includes a reference to a sheriff, and

(b)
ignore subsection (7).

(9)
In the application of this section to Northern Ireland—

(a)
the reference to a justice of the peace is a reference to a lay magistrate,

and

(b)
the reference to sections 15(5) to (8) and 16 of the Police and Criminal

Evidence Act 1984 is a reference to the equivalent provisions of the

Police and Criminal Evidence (Northern Ireland) Order 1989.’.

Report Stage Proceedings: 26th November 2008
955

Banking Bill, continued

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  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

Agreed to  53

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

Mr Chancellor of the Exchequer

Agreed to  54

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

Mr Chancellor of the Exchequer

Agreed to  55

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

Mr Chancellor of the Exchequer

Agreed to  56

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

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  58

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

Mr Chancellor of the Exchequer

Agreed to  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.

Report Stage Proceedings: 26th November 2008
956

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

Agreed to  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

Agreed to  61

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

‘(a)
’.

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  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

Not called  15

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

Mr Chancellor of the Exchequer

Agreed to  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

Not called  16

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

Report Stage Proceedings: 26th November 2008
957

Banking Bill, continued

Mr Mark Hoban

Not called  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

Agreed to  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

Agreed to  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

Agreed to  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

Agreed to  68

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

Mr Chancellor of the Exchequer

Agreed to  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

Report Stage Proceedings: 26th November 2008
958

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

Agreed to  70

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

to (6)).”.

Mr Chancellor of the Exchequer

Agreed to  71

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

‘167
Borrowing from National Loans
Negative resolution’.

Fund

Mr Chancellor of the Exchequer

Agreed to  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

Report Stage Proceedings: 26th November 2008
959

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

Agreed to  73

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

Bill, as amended, read the third time, and passed.