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

back to previous amendments
 
  
After Clause 389
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
276E*     Insert the following new Clause-- 
 ("City Code 
     .--(1)  Subject to subsection (2), the Authority may adopt a policy that will not exercise its powers under sections 113, 120, 368 and 370 in respect of conduct which is not in conformity with the City Code except following a request by the Panel that the Authority consider whether to exercise all or any of these powers.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in section 109(2)(a).
 
    (3)  The Authority may adopt the following policy in respect of the exercise of its powers under section 368(1) to (3), namely that, in any case where the Authority is of the opinion that--
    (a)  any application or proposed application by the Authority for any order or interdict under that section, or
    (b)  the making, confirmation or continuance of any order or interdict made under that section,
may materially affect the timetable or outcome of an offer to which the City Code applies, the Authority shall consult the Panel--
          (i)  before making or proceeding further with the application, and
          (ii)  (in any case where the Authority forms such opinion after an order or interdict has been made) before making any further representations to the court seeking the confirmation or continuance of the order or interdict.
    (4)  Where the Authority has adopted a policy within subsections (1) or (3), such policy shall be recorded in a statement issued under this section and the provisions of section 114(6) to 114(8) shall apply to a statement issued under this section.
 
    (5)  The Authority shall not exercise its powers under sections 113, 120, 368 and 370 in a manner which is not in accordance with any statement of policy issued under this section.
 
    (6)  The provisions of this Act which refer to the Panel or to the City Code shall not be construed as imposing any statutory duty on the Panel and no such duty shall be imposed on the Panel by reason of anything done or not done by the Authority or the Panel under or in connection with such provisions.
 
    (7)  Neither the Panel nor any person who is, or is acting as, a member, officer, member of staff or agent of the Panel is to be liable in damages for anything done or omitted which is or may be connected in any way with the exercise or purported exercise of any duty, power or function of the Authority under this Act unless the act or omission is shown to have been in bad faith.
 
    (8)  In this section--
    conduct which is not in conformity with the City Code" means conduct of a person which, in the opinion of the Panel, does not conform with the responsibilities imposed on that person by the City Code (as applied by the Panel);
    offer" has the meaning given in the City Code, as determined by the Panel.")
Statements of policy: City Code.
276F*     Insert the following new Clause-- 
     ("  .--(1)  Subject to subsection (2), the code referred to in section 110 may state that behaviour which, in the opinion of the Panel, conforms with the responsibilities imposed on the person whose behaviour it is by the City Code (as applied by the Panel) does not amount to market abuse.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in subsection 109(2)(a).
 
    (3)  If a person behaves in a way which is described in or fulfils the requirements of any such statement included in the code referred to in section 110, that behaviour of his is to be taken, for the purposes of this Act, as not amounting to market abuse.")
City Code and market abuse.
  
After Clause 391
 
  
BY THE LORD McINTOSH OF HARINGEY
 
277     Insert the following new Clause-- 
 ("Limitation on powers to require documents 
       .--(1)  A person may not be required under this Act to produce, disclose or permit the inspection of protected items.
 
    (2)  Protected items" means--
    (a)  communications between a professional legal adviser and his client or any person representing his client which fall within subsection (3);
    (b)  communications between a professional legal adviser, his client or any person representing his client and any other person which fall within subsection (3) (as a result of paragraph (b) of that subsection);
    (c)  items which--
          (i)  are enclosed with, or referred to in, such communications;
          (ii)  fall within subsection (3); and
          (iii)  are in the possession of a person entitled to possession of them.
    (3)  A communication or item falls within this subsection if it is made--
    (a)  in connection with the giving of legal advice to the client; or
    (b)  in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings.
    (4)  A communication or item is not a protected item if it is held with the intention of furthering a criminal purpose.")
Protected items.
  
Clause 392
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
277ZA*     Page 207, line 13, at end insert--
    (""City Code" means the City Code on Takeovers and Mergers (as amended from time to time) issued by the Panel;")
 
277A     Page 207, line 30, at end insert ("or 318") 
  
BY THE LORD McINTOSH OF HARINGEY
 
277B*     Page 207, leave out line 46 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
277C*     Page 208, line 3, at end insert--
    (""the Panel" means the Panel of Takeovers and Mergers;")
 
  
BY THE LORD McINTOSH OF HARINGEY
 
278     Page 208, leave out lines 32 and 33 
  
Clause 397
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
278A     Page 212, line 19, at end insert--
 
    ("(8)  An agreement or arrangement is not within subsection (4)(g) if the agreement or arrangement is for the other person to acquire, hold or dispose of shares or other interests as agents or nominee on behalf of H without the other person being able to exercise, or control the exercise of, voting rights otherwise than at the direction of H.")
 
  
Clause 401
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     The Lord McIntosh of Haringey gives notice of his intention to oppose the Question that Clause 401 stand part of the Bill. 
  
Clause 402
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
278B     Page 214, line 3, leave out subsection (4) and insert--
 
    ("(4)  No provision of this Act other than section (Imposition of restrictions or requirements by the Treasury) restricts powers conferred by this section.")
 
  
After Clause 402
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
278C     Insert the following new Clause-- 
     ("  .--(1)  Where given power under this Act to make regulations or orders in that behalf, the Treasury shall not impose restrictions or requirements which are likely to have any of the relevant effects except to the necessary extent and shall disapply, limit or relax restrictions or requirements imposed by or under this Act so as to seek to ensure that they are likely to have the relevant effects only to the necessary extent.
 
    (2)  The relevant effects are: impairing, impeding, restricting or distorting competition or innovation.
 
    (3)  The necessary extent is the extent necessary to protect actual or potential consumers and financial markets or exchanges, or to maintain confidence in the financial system.
 
    (4)  Competition is the international competitiveness of the United Kingdom, the financial system or UK persons and competition between authorised persons.
 
    (5)  Consumers" has the same meaning as in section 5.
 
    (6)  The financial system" has the same meaning as in section 3.
 
    (7)  UK person" means a person whose registered office (or if he does not have a registered office whose head office) is in the United Kingdom.")
Imposition of restrictions or requirements by the Treasury.
  
After Clause 403
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
278D*     Insert the following new Clause-- 
     ("  .--(1)  The Treasury must publish a draft of any regulation or order proposed to be made pursuant to any power to make regulations or orders under this Act in the way appearing to them to be best calculated to bring it to the attention of the public.
 
    (2)  The draft must be accompanied by--
    (a)  an explanation of the purpose of the proposed regulations or order; and
    (b)  notice that representations about the proposals may be made to the Treasury within a specified time.
    (3)  Before making the proposed regulations or order, the Treasury must publish an account in general terms of--
    (a)  the representations made to them in accordance with subsection (2)(b); and
    (b)  their response to them.
    (4)  If the regulations or order made by the Treasury differ from the draft published under subsection (1) in a way which is, in the opinion of the Treasury, significant, the Treasury must (in addition to complying with subsection (3)) publish details of the difference.
 
    (5)  Subsections (1) to (4) do not apply if the Treasury consider that the delay involved in complying with them would be prejudicial to the interests of consumers.")
Publication of draft regulations or orders.
  
Clause 404
 
  
BY THE LORD McINTOSH OF HARINGEY
 
278E*     Page 214, line 15, after ("(d)") insert (", (Expressions relating to open-ended investment companies)(5)") 
278F*     Page 214, line 22, after ("(4)") insert ("or (4A)") 
278G*     Page 214, line 35, at end insert--
 
    ("(4A)  This subsection applies to an order under section 36 if--
    (a)  it is the first order to be made, or to contain provisions made, under that section; or
    (b)  it contains provisions restricting or removing an exemption provided by an earlier order made under that section.")
 
  
After Clause 404
 
  
BY THE LORD TAVERNE
THE LORD NEWBY
THE LORD SHARMAN
 
279     Insert the following new Clause-- 
     ("  .  Any statutory instruments made under this Act must be referred to the Practitioner Panel and Consumer Panel for their comment before they are laid before Parliament.")Statutory Instruments: referral to Panels.
  
Clause 407
 
  
BY THE LORD McINTOSH OF HARINGEY
 
280*     Page 215, line 16, at end insert--
 
    ("(  )  Schedule 18A makes transitional provisions.")
 
  
After Schedule 18
 
  
BY THE LORD McINTOSH OF HARINGEY
 
281*     Insert the following new Schedule-- 
 ("SCHEDULE 18A 
 TRANSITIONAL PROVISIONS AND SAVINGS> 
 Self-regulating organisations 
     1.--(1)  No new application under section 9 of the 1986 Act (application for recognition) may be entertained.
 
    (2)  No outstanding application made under that section before the passing of this Act may continue to be entertained.
 
    (3)  After the date which is the designated date for a recognised self-regulating organisation--
    (a)  the recognition order for that organisation may not be revoked under section 11 of the 1986 Act (revocation of recognition);
    (b)  no application may be made to the court under section 12 of the 1986 Act (compliance orders) with respect to that organisation.
    (4)  The powers conferred by section 13 of the 1986 Act (alteration of rules for protection of investors) may not be exercised.
 
    (5)  Designated date" means such date as the Treasury may by order designate.
 
    (6)  Sub-paragraph (3) does not apply to a recognised self-regulating organisation in respect of which a notice of intention to revoke its recognition order was given under section 11(3) of the 1986 Act before the passing of this Act if that notice has not been withdrawn.
 
    (7)  Expenditure incurred by the Authority in connection with the winding up of any body which was, immediately before the passing of this Act, a recognised self-regulating organisation is to be treated as having been incurred in connection with the discharge by the Authority of functions under this Act.
 
    (8)  Recognised self-regulating organisation" means an organisation which, immediately before the passing of this Act, was such an organisation for the purposes of the 1986 Act.
 
     (9)  The 1986 Act" means the Financial Services Act 1986.1986 c. 60.
 Self-regulating organisations for friendly societies 
     2.--(1)  No new application under paragraph 2 of Schedule 11 to the 1986 Act (application for recognition) may be entertained.
 
    (2)  No outstanding application made under that paragraph before the passing of this Act may continue to be entertained.
 
    (3)  After the date which is the designated date for a recognised self-regulating organisation for friendly societies--
    (a)  the recognition order for that organisation may not be revoked under paragraph 5 of Schedule 11 to the 1986 Act (revocation of recognition);
    (b)  no application may be made to the court under paragraph 6 of that Schedule (compliance orders) with respect to that organisation.
    (4)  Designated date" means such date as the Treasury may by order designate.
 
    (5)  Sub-paragraph (3) does not apply to a recognised self-regulating organisation for friendly societies in respect of which a notice of intention to revoke its recognition order was given under section 11(3) of the 1986 Act (as applied by paragraph 5(2) of that Schedule) before the passing of this Act if that notice has not been withdrawn.
 
    (6)  Expenditure incurred by the Authority in connection with the winding up of any body which was, immediately before the passing of this Act, a recognised self-regulating organisation for friendly societies is to be treated as having been incurred in connection with the discharge by the Authority of functions under this Act.
 
    (7)  Recognised self-regulating organisation for friendly societies" means an organisation which, immediately before the passing of this Act, was such an organisation for the purposes of the 1986 Act.
 
     (8)  The 1986 Act" means the Financial Services Act 1986.")1986 c. 60.
 
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