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

back to previous amendments
 
  
After Clause 95
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Insert the following new Clause-- 
     (".--(1) In determining its policy with respect to the amount of penalties to be imposed by it under this Part, the competent authority must take no account of the expenses which it incurs, or expects to incur, in discharging its functions under this Part.
 
    (2)  The competent authority must prepare and operate a scheme for ensuring that the amounts paid to it by way of penalties imposed under this Part are applied for the benefit of issuers of securities admitted to the official list.
 
    (3)  The scheme may, in particular, make different provision with respect to different classes of issuer.
 
    (4)  Up to date details of the scheme must be set out in a document ("the scheme details").
 
    (5)  The scheme details must be published by the competent authority in the way appearing to it to be best calculated to bring them to the attention of the public.
 
    (6)  Before making the scheme, the competent authority must publish a draft of the proposed scheme in the way appearing to it to be best calculated to bring it to the attention of the public.
 
    (7)  The draft must be accompanied by notice that representations about the proposals may be made to the competent authority within a specified time.
 
    (8)  Before making the scheme, the competent authority must have regard to any representations made to it under subsection (7).
 
    (9)  If the competent authority makes the proposed scheme, it must publish an account, in general terms, of--
    (a)  the representations made to it in accordance with subsection (7); and
    (b)  its response to them.
    (10)  If the scheme differs from the draft published under subsection (6) in a way which is, in the opinion of the competent authority, significant the competent authority must (in addition to complying with subsection (9)) publish details of the difference.
 
    (11)  The competent authority must, without delay, give the Treasury a copy of any scheme details published by it.
 
    (12)  The competent authority may charge a reasonable fee for providing a person with a copy of--
    (a)  a draft published under subsection (6);
    (b)  scheme details.
    (13)  Subsections (6) to (10) and (12) apply also to a proposal to alter or replace the scheme.")
Penalties.
  
Clause 98
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 44, line 6, leave out ("Stock Exchange") and insert ("Authority") 
     Page 44, line 13, at end insert--
 
    ("(  )  If, as a result of an order under Schedule 7, different functions conferred on the competent authority by this Part are exercisable by different persons, the powers conferred by section 87 are exercisable by such person as may be determined in accordance with the provisions of the order.")
 
     Page 44, line 24, leave out ("(3)(a)") and insert ("(3)") 
  
Clause 106
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 48, line 11, at end insert ("Parts I and II of") 
  
Schedule 11
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 251, line 6, at end insert-- 
 ("PART III 
 INSURANCE BUSINESS TRANSFERS EFFECTED OUTSIDE THE UNITED KINGDOm 
     .--(1) This paragraph applies to a proposal to execute under provisions corresponding to Part VII in a country or territory other than the United Kingdom an instrument transferring all the rights and obligations of the transferor under general or long-term insurance policies, or under such descriptions of such policies as may be specified in the instrument, to the transferee if any of the conditions in sub-paragraphs (2), (3) or (4) is met in relation to it.
 
    (2)  The transferor is an EEA firm falling within paragraph 5(d) of Schedule 3 and the transferee is an authorised person whose margin of solvency is supervised by the Authority.
 
    (3)  The transferor is a company authorised in an EEA State other than the United Kingdom under Article 27 of the first life insurance directive, or Article 23 of the first non-life insurance directive and the transferee is a UK authorised person which has received authorisation under Article 6 of either of those directives.
 
    (4)  The transferor is a Swiss general insurance company and the transferee is a UK authorised person which has received authorisation under Article 6 of the first life insurance directive or the first non-life insurance directive.
 
    (5)  In relation to a proposed transfer to which this paragraph applies, the Authority may, if they are satisfied that the transferee possesses the necessary margin of solvency, issue a certificate to that effect.
 
    (6)  Necessary margin of solvency" means the margin of solvency which the transferee, taking the proposed transfer into account, is required by the Authority to maintain.
 
    (7)  Swiss general insurance company" has the same meaning as in paragraph 2.
 
    (8)  General policy" means a policy evidencing a contract which, if it had been effected by the transferee, would have constituted the carrying on of general insurance business.
 
    (9)  Long-term policy" means a policy evidencing a contract which, if it had been effected by the transferee, would have constituted the carrying on of long-term insurance business.")
 
  
After Clause 107
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Insert the following new Clause-- 
     (".--(1) This section applies if an order has been made under section 106(1).
 
    (2)  The court making the order may, on the application of the Authority, appoint an independent actuary--
    (a)  to investigate the business transferred under the scheme; and
    (b)  to report to the Authority on any reduction in the benefits payable under policies entered into by the authorised person concerned that, in the opinion of the actuary, ought to be made.")
Appointment of actuary in relation to reduction of benefits.
  
After Clause 108
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Insert the following new Clause-- 
 ("Business transfers outside the United Kingdom 
     . Part III of Schedule 11 makes provision about certificates which the Authority may issue in relation to insurance business transfers taking place outside the United Kingdom.")Certificates for purposes of insurance business transfers overseas.
     Insert the following new Clause-- 
     (".--(1) This section applies if, as a result of an authorised transfer, an EEA firm falling within paragraph 5(d) of Schedule 3 transfers to another body all its rights and obligations under any UK policies.
 
    (2)  This section also applies if, as a result of an authorised transfer, a company authorised in an EEA State other than the United Kingdom under Article 27 of the first life insurance directive, or Article 23 of the first non-life insurance directive, transfers to another body all its rights and obligations under any UK policies.
 
    (3)  If appropriate notice of the execution of an instrument giving effect to the transfer is published, the instrument has the effect in law--
    (a)  of transferring to the transferee all the transferor's rights and obligations under the UK policies to which the instrument applies, and
    (b)  if the instrument so provides, of securing the continuation by or against the transferee of any legal proceedings by or against the transferor which relate to those rights and obligations.
    (4)  No agreement or consent is required before subsection (3) has the effects mentioned.
 
    (5)  Authorised transfer" means--
    (a)  in subsection (1), a transfer authorised in the home State of the EEA firm in accordance with--
          (i)  Article 11 of the third life directive; or
          (ii)  Article 12 of the third non-life directive; and
    (b)  in subsection (2), a transfer authorised in an EEA State other than United Kingdom in accordance with--
          (i)  Article 31a of the first life directive; or
          (ii)  Article 28a of the first non-life directive.
    (6)  UK policy" means a policy evidencing a contract of insurance (other than a contract of reinsurance) to which the applicable law is the law of any part of the United Kingdom.
 
    (7)  Appropriate notice" means--
    (a)  if the UK policy evidences a contract of insurance in relation to which an EEA State other than the United Kingdom is the State of the commitment, notice given in accordance with the law of that State;
    (b)  if the UK policy evidences a contract of insurance where the risk is situated in an EEA State other than the United Kingdom, notice given in accordance with the law of that EEA State;
    (c)  in any other case, notice given in accordance with the applicable law.
    (8)  Paragraph 6 of Schedule 11 applies for the purposes of this section as it applies for the purposes of that Schedule.")
Effect of insurance business transfers authorised in other EEA States.
  
Clause 129
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 60, line 8, leave out from ("of") to end of line 15 and insert ("consumers") 
     Page 60, line 35, at end insert--
 
    ("(7)  Consumers" means persons--
    (a)  who use, have used, or are or may be contemplating using, any of the services provided by--
          (i)  authorised persons in carrying on regulated activities; or
          (ii)  persons acting as appointed representatives; or
    (b)  who have rights or interests which--
          (i)  are derived from, or are otherwise attributable to, or
          (ii)  may be adversely affected by,
 
 the use of any such services by other persons. 
     (8)  If an authorised person is carrying on a regulated activity in his capacity as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or are or may be contemplating using services provided by the authorised person in his carrying on of that activity.
 
    (9)  For the purposes of subsection (7) a person who deals with an authorised person in the course of the authorised person's carrying on of a regulated activity is to be treated as using services provided by the authorised person in carrying on those activities.")
 
  
Clause 141
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 66, line 35, after ("include") insert ("--
    (  )  listing rules; or
    (  )")  
 
  
Clause 150
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 70, line 22, leave out paragraph (c) 
     Page 70, line 24, leave out paragraph (e) 
  
Clause 177
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 89, line 28, leave out from ("of") to ("would") in line 30 and insert ("consumers") 
     Page 89, line 44, at end insert--
 
    ("(  )  Consumers" means persons who are consumers for the purposes of section 129.")
 
  
Clause 319
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 167, line 14, at end insert--
 
    ("(  )  A direction under subsection (1) must be published in the way appearing to the Authority to be best calculated to bring it to the attention of the public.
 
    (  )  The Authority may charge a reasonable fee for providing a person with a copy of the direction.
 
    (  )  The Authority must, without delay, give the Treasury a copy of any direction which it gives under this section.")
 
     Page 167, line 29, after ("use,") insert ("have used or are") 
     Page 167, line 34, at end insert--
 
    ("(  )  If a member of a profession is carrying on an exempt regulated activity in his capacity as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or are or may be contemplating using services provided by that person in his carrying on of that activity.")
 
  
Clause 363
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 190, line 6, leave out ("Schedule 2C of the 1982 Act") and insert ("Part VII") 
  
Clause 377
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 198, line 14, leave out ("publish") and insert ("issue") 
  
Clause 392
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 208, leave out lines 32 and 33 
 
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