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

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Clause 52
 
  
BY THE LORD KINGSLAND
THE LORD SAATCHI
 
157     Page 23, line 33, at end insert--
 
    ("(  )  The Authority must allow the authorised person access to the evidence which it has in relation to the matters causing it to propose to exercise the power.
 
    (  )  The Authority's procedures in relation to the giving of warning notices as determined pursuant to section 375 shall apply in relation to the giving of the notice referred to in subsection (3) as if it was a warning notice.
 
    (  )  The Authority's procedures in relation to the giving of decision notices as determined pursuant to section 376 shall apply in relation to the giving of the notice referred to in subsection (4) as if it was a decision notice.")
 
  
Clause 53
 
  
BY THE LORD KINGSLAND
THE LORD SAATCHI
 
158     Page 24, line 13, at end insert--
 
    ("(  )  The Authority must allow the authorised person access to the evidence which it has in relation to the matters causing it to propose to exercise the power.
 
    (  )  The Authority's procedures in relation to the giving of warning notices as determined pursuant to section 375 (other than subsection (3)) shall apply in relation to the giving of the notice referred to in subsection (3) as if it was a warning notice.
 
    (  )  The Authority's procedures in relation to the giving of decision notices as determined pursuant to section 376 shall apply in relation to the giving of the notice referred to in subsection (4) as if it was a decision notice.")
 
  
Clause 55
 
  
BY THE LORD McINTOSH OF HARINGEY
 
159*     Page 24, line 24, leave out ("or an exempt person") 
160*     Page 24, line 31, leave out ("or exempt persons") 
161*     Page 24, line 32, leave out ("or exempt person") 
162*     Page 24, line 36, leave out ("or exempt") 
163*     Page 24, line 41, at end insert--
 
    ("(  )  This section applies to the performance of functions in relation to a regulated activity carried on by--
    (  )  a person who is an exempt person in relation to that activity, and
    (  )  a person to whom, as a result of Part XX, the general prohibition does not apply in relation to that activity,
as it applies to the performance of functions in relation to a regulated activity carried on by an authorised person.")
 
  
Clause 58
 
  
BY THE LORD McINTOSH OF HARINGEY
 
164     Page 25, line 24, after ("must") insert ("take reasonable care to") 
  
Clause 59
 
  
BY THE LORD McINTOSH OF HARINGEY
 
165     Page 26, line 33, leave out ("further information") and insert ("such further information as it reasonably considers necessary to enable it to determine the application") 
  
Clause 60
 
  
BY THE LORD EATWELL
 
166*     Page 27, line 6, at end insert ("or
    (  )  demonstrates a commitment to engage in continuing professional education and development,")
 
  
After Clause 70
 
  
BY THE BARONESS TURNER OF CAMDEN
 
167     Insert the following new Clause-- 
     ("  . The Authority may--
    (a)  require all authorised persons carrying on a regulated activity of a specified kind to review their conduct of the activity in relation to a specified category of consumers and report the results to the Authority; and
    (b)  if satisfied as a result of the review that an authorised person has contravened any requirement made by the Authority under this Act, order him to pay compensation to consumers who have suffered loss as a result of such a contravention.")
Review of conduct in regulated activities.
  
Clause 72
 
  
BY THE LORD McINTOSH OF HARINGEY
 
168     Page 33, line 5, leave out ("Stock Exchange") and insert ("Authority") 
169     Page 33, line 6, at end insert--
 
    ("(  )  Schedule 6A modifies this Act in its application to the Authority when it acts as the competent authority.")
 
170     Page 33, line 10, leave out subsections (3) to (8) 
  
After Clause 72
 
  
BY THE LORD McINTOSH OF HARINGEY
 
171*     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.")
General duty of the competent authority.
  
Before Schedule 7
 
  
BY THE LORD McINTOSH OF HARINGEY
 
172     Insert the following new Schedule-- 
 ("SCHEDULE 6A 
 THE AUTHORITY AS COMPETENT AUTHORITY FOR PART VI 
 General 
     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. 
 The Authority's general functions 
     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.
 
 Duty to consult 
     3. Section 7 does not apply. 
 Rules 
     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).
 
 Statements of policy 
     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).
 
 Penalties 
     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)). 
 Fees 
     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). 
 Exemption from liability in damages 
     8. Schedule 1 has effect as if paragraph 19 were omitted (similar provision being made in relation to the competent authority by section 97).") 
  
Schedule 7
 
  
BY THE LORD McINTOSH OF HARINGEY
 
173     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")
 
174     Page 238, line 29, leave out paragraphs 2 to 6 
175     Page 239, line 27, after ("VI") insert (", IX or XXVI") 
176     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;")
 
177     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.")
 
  
Clause 73
 
  
BY THE LORD McINTOSH OF HARINGEY
 
178     Page 33, line 30, leave out ("continue to") 
  
Clause 76
 
  
BY THE LORD McINTOSH OF HARINGEY
 
179     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.")
 
  
Clause 83
 
  
BY THE LORD McINTOSH OF HARINGEY
 
180     Page 38, line 25, leave out subsection (6) 
  
After Clause 85
 
  
BY THE LORD McINTOSH OF HARINGEY
 
181*     Insert the following new Clause-- 
 ("Sponsors 
     .--(1)  Listing rules may require a person to make arrangements with a sponsor for the performance by the sponsor of such services in relation to him as may be specified in the rules.
 
    (2)  Sponsor" means a person approved by the competent authority for the purposes of the rules.
 
    (3)  Listing rules made by virtue of subsection (1) may--
    (a)  provide for the competent authority to maintain a list of sponsors;
    (b)  specify services which must be performed by a sponsor;
    (c)  impose requirements on a sponsor in relation to the provision of services or specified services;
    (d)  specify the circumstances in which a person is qualified for being approved as a sponsor.
    (4)  If the competent authority proposes--
    (a)  to refuse a person's application for approval as a sponsor, or
    (b)  to cancel a person's approval as a sponsor,
it must give him a warning notice.
 
    (5)  If, after considering any representations made in response to the warning notice, the competent authority decides--
    (a)  to grant the application for approval, or
    (b)  not to cancel the approval,
it must give the person concerned, and any person to whom a copy of the warning notice was given, written notice of its decision.
 
    (6)  If, after considering any representations made in response to the warning notice, the competent authority decides--
    (a)  to refuse to grant the application for approval, or
    (b)  to cancel the approval,
it must give the person concerned a decision notice.
 
    (7)  A person to whom a decision notice is given under this section may refer the matter to the Tribunal.")
Sponsors.
  
Clause 87
 
  
BY THE LORD McINTOSH OF HARINGEY
 
182*     Page 40, line 2, leave out from ("that") to end of line 12 and insert ("--
    (a)  an issuer of listed securities, or
    (b)  an applicant for listing,
has contravened any provision of listing rules, it may impose on him a penalty of such amount as it considers appropriate.
 
    (  )  If, in such a case, the competent authority considers that a person who was at the material time a director of the issuer or applicant was knowingly concerned in the contravention, it may impose on him a penalty of such amount as it considers appropriate.
 
    (  )  If the competent authority is entitled to impose a penalty on a person under this section in respect of a particular matter it may, instead of imposing a penalty on him in respect of that matter, publish a statement censuring him.
 
    (  )  Nothing in this section prevents the competent authority from taking any other steps which it has power to take under this Part.")
 
183     Page 40, line 14, leave out ("impose a penalty on a person under subsection (1)(b)") and insert ("take action against a person under this section") 
184     Page 40, line 16, at end insert ("unless proceedings against that person, in respect of the contravention, were begun before the end of that period") 
185     Page 40, line 19, at end insert ("; and
    (b)  proceedings against a person in respect of a contravention are to be treated as begun when a warning notice is given to him under section 88.")
 
 
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