Joint Committee on Financial Services and Markets First Report


PROCEEDINGS OF THE COMMITTEE RELATING TO THE REPORT


  DIE MARTIS, 2° MARTII 1999

  Present:

Lord Burns

Lord Eatwell

Lord Fraser of Carmyllie

Lord Montague of Oxford

Lord Poole

Lord Taverne

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

The Orders of Reference are read.

The declarations of relevant interests are made:

Lord Burns (Non-executive Director, Legal & General Group plc)

Lord Eatwell (Director and independent board member, Securities and Futures Authority; adviser, EM Warburg Pincus & Co International Ltd)

Lord Fraser of Carmyllie (Chairman, International Petroleum Exchange; Director, Nova Technology Management Ltd; invited Director, London Metal Exchange)

Mr David Kidney MP (Equity partner in solicitors' practice, Jewels & Kidney, Stafford)

Mr Timothy Loughton MP (Director, Fleming Private Asset Management)

Lord Poole (Chief Executive, Ockham Holdings plc, a holding company with interests in financial services in general and insurance in particular, and director of group of companies; Member of the Stock Exchange; registered insurance broker; formerly Chief Executive of a UK regulated bank and a UK firm of stockbrokers)

Lord Taverne (Non-executive Chairman, OLIM Convertible Trust plc; non-executive Deputy Chairman, Central European Growth Fund plc; non-executive Director, Axa Equity & Law plc; Chairman, Axa Equity & Law Life Assurance Society plc)

Viscount Trenchard (Director, Robert Fleming International Ltd)

It is moved that Lord Burns do take the Chair.—(Mr Barry Sheerman).

The same is agreed to.

The Joint Committee deliberate.

Ordered, That Strangers be admitted during the examination of witnesses unless otherwise ordered.

Resolved, That the Committee do seek the opinion of the House of Lords Delegated Powers and Deregulation Committee on the draft Bill.

Resolved, That the Committee do visit the Financial Services Authority at Canary Wharf.

Ordered, That the Joint Committee be adjourned to Tuesday 9th March at 11 am.

  DIE MARTIS, 9° MARTII 1999

  Present:

Lord Eatwell

Lord Haskel

Lord Montague of Oxford

Lord Poole

Lord Taverne

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 2nd March are read.

The Joint Committee deliberate.

Ordered, That Professor Alan Page, Professor of Public Law, Dundee University, be appointed as a Specialist Adviser to assist the Committee.—(The Chairman).

Ordered, That the Joint Committee be adjourned to Tuesday 16th March at 3.30 pm.


  DIE MARTIS, 16° MARTII 1999

  Present:

Lord Eatwell

Lord Haskel

Lord Montague of Oxford

Lord Poole

Lord Taverne

Viscount Trenchard


Mr Nigel Beard

Mrs Liz Blackman

Dr Vincent Cable

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 9th March are read.

The Joint Committee deliberate.

Ordered, That Professor David Llewellyn, Professor of Money and Banking, Loughborough University, be appointed as a Specialist Adviser, to assist the Committee.—(The Chairman).

The following witnesses are examined:

Mr Howard Davies, Chairman of the Financial Services Authority

Mr Michael Foot, Managing Director and Head of Financial Supervision, Financial Services Authority

Mr Phillip Thorpe, Managing Director and Head of Authorisation, Enforcement and Consumer Relations, Financial Services Authority

Ordered, That the Joint Committee be adjourned to Thursday 18th March at 2.45 pm.


  DIE JOVIS, 18° MARTII 1999

  Present:

Lord Eatwell

Lord Haskel

Lord Montague of Oxford

Lord Poole

Viscount Trenchard

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 16th March are read.

The Joint Committee deliberate.

Ordered, That Dr Eilis Ferran, Director of Studies in Law, St Catherine's College, Cambridge, be appointed as a Specialist Adviser to assist the Committee.—(The Chairman).

The following witnesses are examined:

Ms Patricia Hewitt MP, a member of the House of Commons, Economic Secretary to the Treasury

Mr David Roe, Head of the Treasury Bill team

Ordered, That the Joint Committee be adjourned to Tuesday 23rd March at 3.30 pm.


  DIE MARTIS, 23° MARTII 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Haskel

Lord Poole

Lord Taverne

Viscount Trenchard

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Thursday 18th March are read.

The Joint Committee deliberate.

The following witnesses are examined:

Ms Jill Johnstone, Head of Policy, and Mrs Harriet Hall, Legal Adviser, National Consumer Council

Mr Bernard Jones, Chairman, and Mr Garry Heath, Director-General, Independent Financial Advisers Association

Mr Robin Hutton, Director, Singer & Friedlander

Mr Peter Foster, Finance Director, CGU and Mr Mark Boléat, Director-General, Association of British Insurers

Mr Alastair Ross Goobey, Chief Executive, Hermes Pensions Management Ltd

Mr James Stretton, Chief Executive of UK Operations, Standard Life Assurance Co. and Director of the Bank of England

Mr Jonathan Agnew, Executive Chairman, LIMIT plc

Mr Andrew Whittaker, Deputy General Counsel, Financial Services Authority

The following witness is further examined:

Mr David Roe, Head of the Treasury Bill team

Ordered, That the Joint Committee be adjourned to Thursday 25th March at 2.45 pm


  DIE JOVIS, 25° MARTII 1999

  Present:

Lord Haskel

Lord Poole

Lord Taverne

Viscount Trenchard

Mr Nigel Beard

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 23rd March are read.

The Joint Committee deliberate.

The following witnesses are examined:

Mr Kit Farrow, Director General, London Investment Banking Association

Mr David Mayhew and Mr Chris Bates, partners, Clifford Chance

Mr Philip Telford, Senior Policy Researcher, Consumers' Association

Mr Alan Whiting, Director of Regulation & Compliance, London Metal Exchange

Mr Guy Morton, Freshfields/City of London Law Society

The following witnesses are further examined:

Mr David Roe, Head of the Treasury Bill team

Mr Andrew Whittaker, Deputy General Counsel, Financial Services Authority

Ordered, That the Joint Committee be adjourned to Tuesday 30th March at 3.30 pm


  DIE MARTIS, 30° MARTII 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Montague of Oxford

Lord Poole


Mr Nigel Beard

Mrs Liz Blackman

Dr Vincent Cable

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Thursday 25th March are read.

The Joint Committee deliberate.

The following witnesses are examined:

Mr Andrew Buxton, President, and Mr Peter Vipond, Director, British Bankers Association

Mr Marc Sylvain, Managing Director, Fidelity Investment Managers Ltd, Association of Unit Trusts and Investment Funds

Lord Archer of Sandwell QC, a Member of the House of Lords, Chairman of the Council on Tribunals

Ms Lucy Hutchinson and Mr Dominic Clarke, partners, Herbert Smith

Mr Antony Blunden, Company Secretary/Head of Compliance, Credit Suisse Financial Products

Mr Geoffrey Turner, Chief Executive, Securities Institute

The following witnesses are further examined:

Mr David Roe, Head of the Treasury Bill team

Mr Andrew Whittaker, Deputy General Counsel, Financial Services Authority

Ordered, That the Joint Committee be adjourned to Thursday 1st April at 10.30 am.

  DIE JOVIS, 1° APRILIS 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Montague of Oxford


Mr Nigel Beard

Mr David Kidney

Mr Barry Sheerman

Lord Poole

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 30th March are read.

The Joint Committee deliberate.

Ordered, That the Joint Committee be adjourned to Tuesday 13th April at 3.30 pm

  DIE MARTIS, 13° APRILIS 1999

  Present:

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford

Lord Poole

Viscount Trenchard

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Thursday 1st April are read.

The Joint Committee deliberate.

The following witnesses are examined:

Dr Oonagh McDonald CBE

Ms Francesca Arcidiaco, Consumers' Association

Mr David Challen, Chairman of the FSA Practitioner Forum

Mr Tim Herrington, Law Society Company Law Committee

Mr Derek Wanless, NatWest

Mrs Angela Knight, Association of Private Client Investment Managers and Stockbrokers

The following witnesses are further examined:

Ms Barbara Saunders, Chairman of the FSA Consumer Panel

Mr Kit Farrow, London Investment Bankers Association

Mr Philip Telford, Consumers' Association

Mr Mark Boléat, Association of British Insurers

Mr David Roe, Head of the Treasury Bill team

Mr Andrew Whittaker, Deputy General Counsel, Financial Services Authority

Ordered, That the Joint Committee be adjourned to Thursday 15th April at 3.30 pm


  DIE JOVIS, 15° APRILIS 1999

  Present:

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford

Lord Poole

Lord Taverne

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 13th April are read.

The Joint Committee deliberate.

The following witnesses are examined:

Lord Hobhouse of Woodborough, a Member of the House of Lords, Lord of Appeal in Ordinary

Lord Lester of Herne Hill QC, a Member of the House of Lords

Mr Andreas Whittam Smith, Chairman, Financial Services Ombudsman Scheme

Mr David Thomas, Banking Ombudsman

Mr Brian Murphy, Building Societies Ombudsman

Mr Walter Merricks, Insurance Ombudsman

Mr Peter Dean, Investment Ombudsman

Mr Tony Holland, Personal Investment Authority Ombudsman

The following witnesses are further examined:

Mr David Roe, Head of the Treasury Bill team

Mr Andrew Whittaker, Deputy General Counsel, Financial Services Authority

Ordered, That the Joint Committee be adjourned to Tuesday 20th April at 3.30 pm


  DIE MARTIS, 20° APRILIS 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford


Mr Nigel Beard

Mrs Liz Blackman

Mr Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Thursday 15th April are read.

The Joint Committee deliberate.

Ordered, That the Joint Committee be adjourned to Wednesday 21st April at 6.00 pm


  DIE MERCURII, 21° APRILIS 1999

  Present:

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford

Lord Taverne

Mr Nigel Beard

Mrs Liz Blackman

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Tuesday 20th April are read.

The Joint Committee deliberate.

Ordered, That the Joint Committee be adjourned to Thursday 22nd April at 2.30 pm


  DIE JOVIS, 22° APRILIS 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford

Lord Poole

Lord Taverne

Viscount Trenchard

Mr Nigel Beard

Mrs Liz Blackman

Mr Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

The Order of Adjournment is read.

The proceedings of Wednesday 21st April are read.

The Joint Committee deliberate.

Ordered, That the Joint Committee be adjourned to Tuesday 27th April at 2.30 pm


  DIE MARTIS, 27° APRILIS 1999

  Present:

Lord Eatwell

Lord Fraser of Carmyllie

Lord Haskel

Lord Montague of Oxford

Lord Poole

Lord Taverne

Viscount Trenchard

Mr Nigel Beard

Mrs Liz Blackman

Mr David Heathcoat-Amory

Mr David Kidney

Mr Tim Loughton

Mr James Plaskitt

Mr Barry Sheerman

  Lord Burns, in the Chair

A draft Report is proposed by the Chairman, brought up and read.

Ordered, That the draft Report be read a second time, paragraph by paragraph.

Paragraphs 1 to 14 are read and agreed to.

Paragraph 15 is read, amended and agreed to.

Paragraphs 16 to 23 are read and agreed to.

Paragraph 24 is read, amended and agreed to.

Paragraphs 25 to 28 are read and agreed to.

Paragraph 29 is read, amended and agreed to.

Paragraphs 30 to 39 are read and agreed to.

Paragraph 40 is read, amended and agreed to.

A new paragraph—(Lord Taverne) is brought up, read the first and second time and inserted.

Paragraphs 41 to 49 (now paragraphs 42-50) are read and agreed to.

Paragraph 50 (now paragraph 51) is read, amended and agreed to.

Paragraph 51 (now paragraph 52) is read and agreed to.

Paragraph 52 (now paragraph 53) is read, amended and agreed to.

A new paragraph—(Mrs Blackman) is brought up, read the first and second time and inserted.

Paragraph 53 (now paragraph 55) is read and agreed to.

Paragraph 54 (now paragraph 56) is read, amended and agreed to.

Paragraphs 55 to 59 (now paragraphs 57 to 61) are read and agreed to.

Paragraph 60 (now paragraph 62) is read, amended and agreed to.

Paragraphs 61 to 67 (now paragraphs 63 to 69) are read and agreed to.

Paragraph 68 (now paragraph 70) is read, amended and agreed to.

Paragraphs 69 to 83 (now paragraphs 71 to 85) are read and agreed to.

Paragraphs 84 and 85 (now paragraphs 86 and 87) are read, amended and agreed to.

Paragraph 86 (now paragraph 88) is read and agreed to.

Paragraph 87 (now paragraph 89) is read, amended and agreed to.

Paragraphs 88 and 89 (now paragraphs 90 and 91) are read and agreed to.

Paragraph 90 (now paragraph 92) is read, amended and agreed to.

Paragraph 91 (now paragraph 93) is read and agreed to.

Paragraphs 92 and 93 (now paragraphs 94 and 95) are read, amended and agreed to.

Paragraph 94 and 95 (now paragraphs 96 and 97) are read and agreed to.

Paragraph 96 (now paragraph 98) is read, amended and agreed to.

Paragraphs 97 to 100 (now paragraphs 99 to 102) are read and agreed to.

Paragraph 101 (now paragraph 103) is read, amended and agreed to.

Paragraphs 102 to 104 (now paragraphs 104 to 106) are read and agreed to.

Paragraph 105 (now paragraph 107) is read, amended and agreed to.

Paragraphs 106 to 110 (now paragraphs 108 to 112) are read and agreed to.

Paragraph 111 (now paragraph 113) is read, amended and agreed to.

Paragraph 112 (now paragraph 114) is read and agreed to.

Paragraph 113 (now paragraph 115) is read, amended and agreed to.

Paragraphs 114 to 119 (now paragraphs 116 to 121) are read and agreed to.

Paragraph 120 (now paragraph 122) is read, amended and agreed to.

Paragraphs 121 to 137 (now paragraphs 123 to 139) are read and agreed to.

Paragraphs 138 and 139 (now paragraphs 140 and 141) are read, amended and agreed to.

Paragraphs 140 to 143 (now paragraphs 142 to 144) are read and agreed to.

Paragraph 144 (now paragraph 146) is read, amended and agreed to.

Paragraphs 145 to 158 (now paragraphs 147 to 160) are read and agreed to.

Paragraph 159 (now paragraph 161) is read, amended and agreed to.

Paragraph 160 (now paragraph 162) is read and agreed to.

Paragraph 161 (now paragraph 162) is read and agreed to.

A new paragraph—(The Chairman) is brought up, read the first and second time, and inserted.

Paragraphs 162 to 166 (now paragraphs 165 to 169) are read and agreed to.

Paragraph 167 (now paragraph 170) is read, amended and agreed to.

Paragraphs 168 to 194 (now paragraphs 171 to 197) are read and agreed to.

Paragraph 195 to 198 (now paragraphs 198 to 201) are read, amended and agreed to.

Paragraph 199 to 201 (now paragraphs 202 to 204) are read and agreed to.

Paragraph 202 (now paragraph 205) is read, amended and agreed to.

Paragraphs 203 to 214 (now paragraphs 206 to 217) are read and agreed to.

Paragraph 215 (now paragraph 218) is read, amended and agreed to.

Paragraphs 216 to 226 (now paragraphs 219 to 229) are read and agreed to.

Paragraph 227 (now paragraph 230) is read, amended and agreed to.

Paragraphs 228 to 244 (now paragraphs 231 to 247) are read and agreed to.

Paragraph 245 (now paragraph 248) is read, amended and agreed to.

Paragraphs 246 to 249 (now paragraphs 249 to 252) are read and agreed to.

Paragraph 250 and 251 (now paragraphs 253 and 254) are read, amended and agreed to.

Paragraphs 252 and 253 (now paragraphs 255 and 256) are read and agreed to.

Paragraph 254 (now paragraph 257) is read, amended and agreed to.

Paragraphs 255 to 259 (now paragraphs 258 to 262) are read and agreed to.

Paragraph 260 (now paragraph 263) is read, amended and agreed to.

Paragraphs 261 to 266 (now paragraph 264 to 269) are read and agreed to.

Paragraph 267 (now paragraph 270) is read, amended and agreed to.

Paragraph 268 (now paragraph 271) is read, amended and agreed to.

Paragraph 269 (now paragraph 272) is read and agreed to.

Paragraph 270 to 276 (now paragraphs 273 to 279) are read and agreed to.

Paragraphs 277 and 278 (now paragraphs 280 and 281) are read, amended and agreed to.

Paragraphs 279 to 290 (now paragraphs 282 to 293) are read and agreed to.

Paragraphs 291 and 292 (now paragraphs 294 and 295) are read, amended and agreed to.

Paragraph 293 (now paragraph 296) is read and agreed to.

Resolved, That the Report, as amended, be agreed to.

Ordered, That the following papers be annexed to the Report:

A  Note on the pre-legislative process

B  Memorandum from the House of Lords Delegated Powers and Deregulation Committee

C  Opinion by Lord Lester of Herne Hill QC and Javan Herberg

D  Advice by Lord Lester of Herne Hill QC and Monica Carss-Frisk

Ordered, That memoranda received by the Committee be appended to the Minutes of Evidence.

Ordered, That the Chairman do make the Report to the House of Lords and Mr Barry Sheerman do make the Report to the House of Commons.

Ordered, That, where the Chairman considers it appropriate, embargoed copies of the Report may be given to specific individuals and other persons not more than twenty four hours in advance of publication.

Ordered, That the Joint Committee be adjourned.


 
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Prepared 29 April 1999