Financial Services and Markets Bill -
Amendments to be debated in the House of Lords
- continued
House of Lords

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Clause 387
195     Page 206, line 3, after ("section") insert ("(Cancellation of Part IV permission: procedure)(1),") 
196     Page 206, line 4, after ("66(1),") insert (" 87(4)(b),") 
197     Page 206, line 7, after ("section") insert ("(Cancellation of Part IV permission: procedure)(2),") 
198     Page 206, line 8, after ("66(4),") insert (" 87(6)(b),") 
Clause 388
199     Page 206, line 38, at end insert ("or") 
Clause 390
200     Page 209, line 15, at end insert--
    ("(  )  (Exercise of own-initiative power to vary Part IV permission: procedure)(4), (7) or (8)(b);
    (  )  (Discontinuance or suspension: procedure)(2) or (5);
    (  )  193(3), (6) or (7)(b);")
201     Page 209, line 17, leave out paragraphs (b) and (c) and insert--
    ("(  )  264(3), (7)(a) or (9)(a) (as a result of subsection (8)(b));
    (  )  278(3), (6) or (7)(b);")
Clause 392
202     Page 210, line 27, at end insert--
    ("(  )  In proceedings for an offence under subsection (2) brought against a person to whom subsection (1) applies as a result of paragraph (a) of that subsection, it is a defence for him to show that the statement was made in conformity with price stabilising rules or control of information rules.")
203     Page 210, line 35, at end insert ("; or
    (c)  that he acted or engaged in the conduct in conformity with control of information rules")
204     Page 211, line 14, after ("2") insert ("(except paragraphs 25 and 26)") 
205     Page 211, line 14, leave out ("subsection (9)") and insert ("subsections (8) and (9)") 
206     Page 211, line 17, after ("subsection") insert ("(8) or") 
Clause 395
207     Page 212, line 5, leave out subsection (3) 
208     Page 212, line 10, leave out ("in Scotland") 
209     Page 212, line 23, at end insert--
    ("(  )  If an offence under this Act committed by an unincorporated association (other than a partnership) is shown--
    (a)  to have been committed with the consent or connivance of an officer of the association or a member of its governing body, or
    (b)  to be attributable to any neglect on the part of such an officer or member,
that officer or member as well as the association is guilty of the offence and liable to be proceeded against and punished accordingly.")
210     Page 212, line 26, after ("unincorporated") insert ("association") 
After Clause 397
211     Insert the following new Clause-- 
     ("  .--(1)  A fine imposed on an unincorporated association on its conviction of an offence is to be paid out of the funds of the association.
    (2)  Proceedings for an offence alleged to have been committed by an unincorporated association must be brought in the name of the association (and not in that of any of its members).
    (3)  Rules of court relating to the service of documents are to have effect as if the association were a body corporate.
    (4)  In proceedings for an offence brought against an unincorporated association--
    (a)  section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 (procedure) apply as they do in relation to a body corporate;
    (b)  section 70 of the Criminal Procedure (Scotland) Act 1995 (procedure) applies as if the association were a body corporate;
    (c)  section 18 of the Criminal Justice (Northern Ireland) Act 1945 and Schedule 4 to the Magistrates' Courts Northern Ireland) Order 1981 (procedure) apply as they do in relation to a body corporate.
    (5)  Summary proceedings for an offence may be taken--
    (a)  against a body corporate or unincorporated association at any place at which it has a place of business;
    (b)  against an individual at any place where he is for the time being.
    (6)  Subsection (5) does not affect any jurisdiction exercisable apart from this section.
    (7)  Offence" means an offence under this Act.")
Jurisdiction and
procedure in
respect of
Before Clause 398
212     Insert the following new Clause-- 
     ("  .--(1) Subsection (2) applies if the Treasury are satisfied that there is evidence suggesting--
    (a)  that there has been a widespread or regular failure on the part of authorised persons to comply with rules relating to a particular kind of activity; and
    (b)  that, as a result, private persons have suffered (or will suffer) loss in respect of which authorised persons are (or will be) liable to make payments ("compensation payments").
    (2)  The Treasury may by order ("a scheme order") authorise the Authority to establish and operate a scheme for--
    (a)  determining the nature and extent of the failure;
    (b)  establishing the liability of authorised persons to make compensation payments; and
    (c)  determining the amounts payable by way of compensation payments.
    (3)  An authorised scheme must be made so as to comply with specified requirements.
    (4)  A scheme order may be made only if--
    (a)  the Authority has given the Treasury a report about the alleged failure and asked them to make a scheme order;
    (b)  the report contains details of the scheme which the Authority propose to make; and
    (c)  the Treasury are satisfied that the proposed scheme is an appropriate way of dealing with the failure.
    (5)  A scheme order may provide for specified provisions of or made under this Act to apply in relation to any provision of, or determination made under, the resulting authorised scheme subject to such modifications (if any) as may be specified.
    (6)  For the purposes of this Act, failure on the part of an authorised person to comply with any provision of an authorised scheme is to be treated (subject to any provision made by the scheme order concerned) as a failure on his part to comply with rules.
    (7)  This section applies whenever the failure in question occurred.
    (8)  Authorised scheme" means a scheme authorised by a scheme order.
    (9)  Private person" has such meaning as may be prescribed.
    (10)  Specified" means specified in a scheme order.")
Schemes for reviewing past business.
Clause 405
213     Page 218, line 9, leave out ("any contract") and insert ("a contract if") 
214     Page 218, line 10, at beginning insert ("it is") 
215     Page 218, line 11, leave out paragraph (b) and insert--
    ("(b)  the entering into or performance of it by either party constitutes an activity of a specified kind or one which falls within a specified class of activity; and
    (c)  it relates to an investment of a specified kind or one which falls within a specified class of investment.
    (3)  Part II of Schedule 2 applies for the purposes of subsection (2)(c), with the references to section 20 being read as references to that subsection.
    (4)  Nothing in Part II of Schedule 2, as applied by subsection (3), limits the power conferred by subsection (2)(c).
    (5)  Investment" includes any asset, right or interest.
    (6)  Specified" means specified in an order made by the Treasury.")
After Clause 406
216     Insert the following new Clause-- 
 ("Service of notices 
     .--(1) The Treasury may by regulations make provision with respect to the procedure to be followed, or rules to be applied, when a provision of or made under this Act requires a notice or other document to be given.
    (2)  The regulations may, in particular, make provision--
    (a)  as to the manner in which a document must be given;
    (b)  as to the address to which a document must be sent;
    (c)  requiring, or allowing, a document to be sent electronically;
    (d)  for treating a document as having been given, or as having been received, on a date or at a time determined in accordance with the regulations;
    (e)  as to what must, or may, be done if the person to whom a document is required to be given is not an individual;
    (f)  as to what must, or may, be done if the intended recipient of a document is outside the United Kingdom.
    (3)  Subsection (1) applies however the obligation to give a document is expressed (and so, in particular, includes a provision which requires a document to be served or sent).
Service of notices.
     (4)  Section 7 of the Interpretation Act 1978 (service of notice by post) has effect in relation to provisions made by or under this Act subject to any provision made by regulations under this section.")1978 c. 31.
Clause 407
217     Page 219, line 16, at end insert ("(except in provisions relating to the Competition Commission)") 
218     Page 219, line 17, at end insert--
    (""control of information rules" has the meaning given in section (Control of information)(1):")
219     Page 220, line 3, leave out ("233(2)") and insert ("232") 
After Clause 416
220     Insert the following new Clause-- 
     ("  .--(1) Subsections (2) and (3) apply to an order under section 416 which makes transitional provisions or savings.
    (2)  Such an order may, in particular--
    (a)  if it makes provision about the authorisation and permission of persons who before commencement were entitled to carry on any activities, also include provision for such persons to apply to the Authority not to be treated as having any authorisation or permission;
    (b)  make provision enabling the Authority to require persons of such descriptions as it may direct to re-apply for permissions having effect by virtue of the order;
    (c)  make provision for the continuation as rules of such provisions (including primary and subordinate legislation) as may be designated in accordance with the order by the Authority, including provision for the modification by the Authority of provisions designated;
    (d)  make provision about the effect of requirements imposed, liabilities incurred and any other things done before commencement, including provision for and about investigations, penalties and the taking or continuing of any other action in respect of contraventions;
    (e)  make provision for appellate bodies to continue hearings begun before commencement, including provision about the decisions available to such bodies and the effect of their decisions.
    (3)  Such an order may--
    (a)  confer functions on the Treasury, the Secretary of State, the Authority, the Competition Commission or the Director General of Fair Trading;
    (b)  confer jurisdiction on the Tribunal;
    (c)  provide for fees to be charged by the Authority in connection with the carrying out of any of its functions under the order;
    (d)  modify, exclude or apply (with or without modifications) any primary or subordinate legislation (including any provision of, or made under, this Act).
    (4)  In subsection (2) "commencement" means the commencement of such provisions of this Act as may be specified by the order.")
Transitional provisions.
After Clause 417
221*     Insert the following new Clause-- 
     ("(1)  The Treasury must publish a draft of any regulations or orders proposed to be made under this Act in the way appearing to them to be best calculated to bring it to the attention of the public.
    (2)  The draft must be accompanied by--
    (a)  an explanation of the purpose of the proposed regulations or order; and
    (b)  notice that representations about the proposals may be made to the Treasury within a specified time.
    (3)  Before making the proposed regulations or order, the Treasury must publish an account in general terms of--
    (a)  the representations made to them in accordance with subsection (2)(b); and
    (b)  their response to them.
    (4)  If the regulations or order made by the Treasury differ from the draft published under subsection (1) in a way which is, in the opinion of the Treasury, significant, the Treasury must (in addition to complying with subsection (3)) publish details of the differences.
    (5)  Subsections (1) to (4) do not apply if the Treasury consider that the delay involved in complying with them would be prejudicial to the interests of consumers.")
Consultation on draft regulations and orders.
Clause 418
222     Page 226, line 3, after ("232(5)") insert (", (Schemes for reviewing past business)") 
223     Page 226, line 19, at end insert--
    ("(  )  it varies a previous order made under section 19(5) so as to make section 19(1) apply in circumstances in which it did not, as a result of that previous order, apply;")
224     Page 226, line 21, after ("19(9)") insert ("or (9A)") 
225     Page 226, line 23, at end insert ("; or
    (  )  it adds one or more investments to those which are controlled investments for the purposes of section 19")
Clause 420
226     Page 227, line 1, leave out subsection (1) and insert--
    ("(1)  The following provisions come into force on the passing of this Act--
    (a)  this section;
    (b)  sections 417, 419 and 422;
    (c)  paragraphs 1 and 2 of Schedule 20.")
Schedule 21
     Page 283, line 2, column 3, at beginning insert-- 
 ("In section 13, subsections (2) to (5), (8) and (11).") 
     Page 283, line 2, column 3, at end insert-- 
 ("In section 52, subsection (2)(d) and, in subsection (5), the words from "or where" to the end.
Schedule 7.
In Schedule 8, paragraph 3(2).")
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