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

back to previous amendments
 
  
Clause 89
 
  
BY THE LORD McINTOSH OF HARINGEY
 
186     Page 40, line 31, leave out ("publish") and insert ("issue") 
187*     Page 40, line 34, at end insert--
 
    ("(  )  The Authority's policy in determining what the amount of a penalty should be must include having regard to--
    (a)  the seriousness of the contravention in question in relation to the nature of the requirement contravened;
    (b)  the extent to which that contravention was deliberate or reckless; and
    (c)  whether the person on whom the penalty is to be imposed is an individual.")
 
  
Clause 91
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     The Lord McIntosh of Haringey gives notice of his intention to oppose the Question that Clause 91 stand part of the Bill. 
  
Clause 93
 
  
BY THE LORD McINTOSH OF HARINGEY
 
188     Page 42, line 7, leave out from beginning to ("if") in line 10 
189     Page 42, line 10, after ("information,") insert ("they may include provision") 
  
After Clause 93
 
  
BY THE LORD McINTOSH OF HARINGEY
 
190*     Insert the following new Clause-- 
     ("  .--(1)  Subsection (2) applies if it appears to the competent authority that there are circumstances suggesting that--
    (a)  there may have been a breach of listing rules;
    (b)  a person who was at the material time a director of an issuer of listed securities has been knowingly concerned in a breach of listing rules by that issuer;
    (c)  a person who was at the material time a director of a person applying for the admission of securities to the official list has been knowingly concerned in a breach of listing rules by that applicant;
    (d)  there may have been a contravention of section 81, 83 or 94.
    (2)  The competent authority may appoint one or more competent persons to conduct an investigation on its behalf.
 
    (3)  Part XI applies to an investigation under subsection (2) as if--
    (a)  the investigator were appointed under section 158(1);
    (b)  references to the investigating authority in relation to him were to the competent authority;
    (c)  references to the offences mentioned in section 159 were to those mentioned in subsection (1)(d);
    (d)  references to an authorised person were references to the person under investigation.")
Appointment by competent authority of persons to carry out investigations.
  
Clause 95
 
  
BY THE LORD McINTOSH OF HARINGEY
 
191*     Page 43, line 1, at end insert--
    ("(  )  applications under section (Sponsors) for approval as a sponsor; and
    (  )  continued inclusion of sponsors in the list of sponsors.
    (2)  In exercising its powers under subsection (1), the competent authority may set such fees as it considers will (taking account of the income it expects as the competent authority) enable it--
    (a)  to meet expenses incurred in carrying out its functions under this Part or for any incidental purpose;
    (b)  to maintain adequate reserves; and
    (c)  in the case of the Authority, to repay the principal of, and pay any interest on, any money which it has borrowed and which has been used for the purpose of meeting expenses incurred in relation to--
          (i)  its assumption of functions from the London Stock Exchange Limited in relation to the official list; and
          (ii)  its assumption of functions under this Part.
    (3)  In fixing the amount of any fee which is to be payable to the competent authority, no account is to be taken of any sums which it receives, or expects to receive, by way of penalties imposed by it under this Part.
 
    (4)  Subsection (2)(c) applies whether expenses were incurred before or after the coming into force of this Part.
 
    (5)  Any fee which is owed to the competent authority under any provision made by or under this Part may be recovered as a debt due to it.")
 
  
After Clause 95
 
  
BY THE LORD McINTOSH OF HARINGEY
 
192     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 97
 
  
BY THE LORD TAVERNE
THE LORD NEWBY
THE LORD SHARMAN
 
193*     Page 43, line 27, after ("authority") insert ("or any person acting in the capacity of an agent of the competent authority under any provision of this Act") 
194*     Page 43, line 31, after ("faith") insert ("or reckless") 
  
Clause 98
 
  
BY THE LORD McINTOSH OF HARINGEY
 
195     Page 44, line 6, leave out ("Stock Exchange") and insert ("Authority") 
196     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.")
 
197     Page 44, line 24, leave out ("(3)(a)") and insert ("(3)") 
  
Schedule 10
 
  
BY THE LORD McINTOSH OF HARINGEY
 
198*     Page 244, line 21, leave out ("has such meaning as may be specified") and insert ("means--
    ("(a)  the government of the United Kingdom;
    (b)  the government of any country or territory outside the United Kingdom;
    (c)  a local authority in the United Kingdom or elsewhere;
    (d)  any international organisation the members of which include the United Kingdom or another EEA State; and
    (e)  such other bodies, if any, as may be specified.")
 
199     Page 246, line 29, at end insert-- 
 
    ("(  )  a recognised body within the meaning of section 1(7) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990,")
1990 c. 40.
200     Page 246, line 31, after ("1985,") insert-- 
 
          ("(  )  section 1 of the Housing Associations Act 1985,")
1985 c. 69.
201*     Page 247, line 41, leave out from ("a") to end of line 42 and insert ("public authority.
 
    (  )  Public authority" means--
    (a)  the government of the United Kingdom;
    (b)  the government of any country or territory outside the United Kingdom;
    (c)  a local authority in the United Kingdom or elsewhere;
    (d)  any international organisation the members of which include the United Kingdom or another EEA State; and
    (e)  such other bodies, if any, as may be specified.")
 
  
Clause 106
 
  
BY THE LORD McINTOSH OF HARINGEY
 
202     Page 48, line 11, at end insert ("Parts I and II of") 
  
Schedule 11
 
  
BY THE LORD McINTOSH OF HARINGEY
 
203     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.")
 
  
Clause 107
 
  
BY THE LORD McINTOSH OF HARINGEY
 
204     Page 49, line 13, leave out ("mortgage or") 
205     Page 50, line 5, at end insert--
 
    ("(  )  Charge" includes a mortgage (or, in Scotland, a security over property).")
 
  
After Clause 107
 
  
BY THE LORD McINTOSH OF HARINGEY
 
206     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
 
207     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.
208     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.
 
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