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Lord Sharman: Will the Minister answer the point on competition which I raised?
Lord McIntosh of Haringey: I shall have to write to the noble Lord on that matter. I apologise.
On Question, amendment agreed to.
Lord McIntosh of Haringey moved Amendment No. 170:
- Page 33, line 10, leave out subsections (3) to (8).
Clause 72, as amended, agreed to.
Lord McIntosh of Haringey moved Amendment No. 171:
- After Clause 72, insert the following new clause--
(".--(1) In discharging its general functions the competent authority must have regard to--
(a) the need to use its resources in the most efficient and economic way;
(b) the principle that a burden or restriction which is imposed on a person should be proportionate to the benefits, considered in general terms, which are expected to arise from the imposition of that burden or restriction;
(c) the desirability of facilitating innovation in respect of listed securities;
(d) the international character of capital markets and the desirability of maintaining the competitive position of the United Kingdom;
(e) the need to minimise the adverse effects on competition of anything done in the discharge of those functions;
(f) the desirability of facilitating competition in relation to listed securities.
(2) The competent authority's general functions are--
(a) its function of making rules under this Part (considered as a whole);
(b) its functions in relation to the giving of general guidance in relation to this Part (considered as a whole);
(c) its function of determining the general policy and principles by reference to which it performs particular functions under this Part.").
On Question, amendment agreed to.
Lord McIntosh of Haringey moved Amendment No. 172:
Before Schedule 7, insert the following new schedule--
1. This Act applies in relation to the Authority when it is exercising functions under Part VI as the competent authority subject to the following modifications.
2. In section 2--
(a) subsection (4)(a) does not apply to listing rules;
(b) subsection (4)(c) does not apply to general guidance given in relation to Part VI; and
(c) subsection (4)(d) does not apply to functions under Part VI.
3. Section 7 does not apply.
4.--(1) Sections 140, 144, 145 and 147 do not apply.
(2) Section 146 has effect as if--
(a) the reference in subsection (2)(c) to the general duties of the Authority under section 2 were a reference to its duty under section (General duty of the competent authority); and
(b) section 95 were included in the provisions referred to in subsection (9).
5.--(1) Paragraph 5 of Schedule 1 has effect as if the requirement to act through the Authority's governing body applied also to the exercise of its functions of publishing statements under section 89.
(2) Paragraph 1 of Schedule 1 has effect as if section 89 were included in the provisions referred to in sub-paragraph (2)(d).
6. Paragraph 16 of Schedule 1 does not apply in relation to penalties under Part VI (for which separate provision is made by section (Penalties)).
7. Paragraph 17 of Schedule 1 does not apply in relation to fees payable under Part VI (for which separate provision is made by section 95).
8. Schedule 1 has effect as if paragraph 19 were omitted (similar provision being made in relation to the competent authority by section 97).").
On Question, amendment agreed to.
Schedule 7 [Transfer of functions under Part VI]:
Lord McIntosh of Haringey moved Amendments Nos. 173 to 177:
On Question, amendments agreed to.
Schedule 7, as amended, agreed to.
Clause 73 [The official list]:
Lord McIntosh of Haringey moved Amendment No. 178:
Clause 73, as amended, agreed to.
Clause 76 [Discontinuance and suspension of listing]:
Lord McIntosh of Haringey moved Amendment No. 179:
On Question, amendment agreed to.
Clause 76, as amended, agreed to.
Clause 83 [Publication of prospectus]:
Lord McIntosh of Haringey moved Amendment No. 180:
Amendment No. 180 deletes subsection (6) in Clause 83. That is consequential following changes made in another place and is simply tidying up.
Amendment No. 197 corrects a technical error with Clause 98. The definition of "sale" in subsection (6) should read through to both paragraphs (a) and (b) of subsection (3).
Amendments Nos. 198 and 201 are a bit of housekeeping. Schedule 10 sets out a number of cases in which offers of securities are not to be regarded as made to the public. Paragraph 8 of that schedule covers offers of securities made to a public authority while paragraph 23 covers offers made by public authorities. The amendments simply define public authorities to mean UK central government, foreign governments, UK or foreign local authorities, and any international organisation of which the UK, or another EEA state, is a member. The amendment also gives the Treasury a power to specify other bodies, should that prove necessary.
Amendments Nos. 199 and 200 make changes to Schedule 10. Paragraph 18 of the schedule deals with securities issued by charitable bodies. The amendments are intended to ensure that charities defined under Scots law are covered by that provision.
Finally, Amendment No. 231 provides that there is no right of action for breaches of listing rules under Clause 141. There is no right of action at present, but following the changes made by the new schedule we have just debated, which applies Part X to listing rules, it is necessary to disapply Clause 141. That is not to say that there is no right of action in any circumstance where there has been a breach of listing rules. Clause 86 in Part VI allows those who suffer loss because of untrue or misleading statements in prospectuses or listing particulars to seek compensation. Clause 83(5) makes actionable a failure to publish a prospectus before making an initial public offer. I beg to move.
Lord Peyton of Yeovil: I hate to be tiresome, but could the Minister spare a moment to explain how it was that subsection (6), which he is now seeking to delete, ever appeared in the Bill?
Lord McIntosh of Haringey: To which amendment does the noble Lord refer?
Lord Peyton of Yeovil: To Amendment No. 180, which states,
Page 238, line 25, leave out from beginning to first ("that") in line 27 and insert--
("(b) the Treasury are satisfied that the manner in which, or efficiency with which, the functions are discharged would be significantly improved if they were transferred to the transferee; or
(c) the Treasury are satisfied").
Page 238, line 29, leave out paragraphs 2 to 6.
Page 239, line 27, after ("VI") insert (", IX or XXVI").
Page 239, line 28, at end insert--
("( ) for reviews similar to that made, in relation to the Authority, by section 10;
( ) imposing on the new authority requirements similar to those imposed, in relation to the Authority, by sections 143, 146 and (Authority's duty to co-operate with others);
( ) as to the giving of guidance by the new authority;
( ) for the delegation by the new authority of the exercise of functions under Part VI and as to the consequences of delegation;").
Page 239, line 43, at end insert--
(" . If the Treasury have made an order under paragraph 1 ("the transfer order") they may, by a separate order made under this paragraph, make any provision of a kind that could have been included in the transfer order.").
Page 33, line 30, leave out ("continue to").
On Question, amendment agreed to.
Page 35, line 4, at end insert--
("( ) If the competent authority discontinues or suspends the listing of any securities, the issuer may refer the matter to the Tribunal.").
Page 38, line 25, leave out subsection (6).
The noble Lord said: In moving Amendment No. 180, I should like to speak also to Amendments Nos. 197 to 201 and Amendment No. 231. These amendments make a number of relatively minor changes to the provisions on official listing and related provisions.
"Page 38, line 25, leave out subsection (6)".
I am just wondering how subsection (6), now that it is unwanted, ever got into the Bill. Perhaps I may remind the Minister that subsection (6) states,
"For the purposes of this section, sections 141 and 142 are to be disregarded".
I wonder whether they are still to be disregarded.
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