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

back to previous amendments
 
  
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.
  
Clause 109
 
  
BY THE LORD EATWELL
THE LORD LIPSEY
 
209     Page 51, line 4, after ("a") insert ("reasonable and ethical") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
209A     Page 51, line 12, leave out ("likely") and insert ("intended or might reasonably be presumed to be intended") 
  
BY THE LORD EATWELL
THE LORD LIPSEY
 
210     Page 51, line 15, leave out from beginning to second ("the") 
211     Page 51, line 16, leave out ("as behaviour which") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
211A     Page 51, line 17, at end insert ("and the behaviour is intended or might reasonably be presumed to be intended to cause that distortion") 
  
BY THE LORD McINTOSH OF HARINGEY
 
212     Page 51, line 18, leave out subsection (3) 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
212A     Page 51, leave out lines 18 to 20 and insert--
 
    ("(3)  A person's behaviour shall not be regarded as amounting to market abuse if he--")
 
  
BY THE LORD EATWELL
THE LORD LIPSEY
 
213     Page 51, line 22, leave out ("believed") and insert ("held a reasonable belief") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
213A     Page 51, line 22, after ("believed") insert ("on reasonable grounds") 
  
BY THE LORD McINTOSH OF HARINGEY
 
214     Page 52, line 1, leave out from ("Behaviour") to end of line 2 and insert ("does not amount to market abuse if it conforms with a rule which includes a provision to the effect that behaviour conforming with the rule does not amount to market abuse.") 
  
Clause 110
 
  
BY THE LORD EATWELL
THE LORD LIPSEY
 
215     Page 52, line 15, leave out ("amounts") and insert ("is to be regarded as amounting") 
  
Clause 113
 
  
BY THE LORD McINTOSH OF HARINGEY
 
216     Page 54, line 2, at end insert ("("A")") 
217     Page 54, line 5, leave out ("market abuse") and insert ("behaviour which, if engaged in by A, would amount to market abuse") 
218     Page 54, line 6, at end insert--
 
    ("(  )  But the Authority may not impose a penalty on a person if, having considered any representations made to it in response to a warning notice, there are reasonable grounds for it to be satisfied that--
    (a)  he believed, on reasonable grounds, that his behaviour did not amount to market abuse; or
    (b)  he took all reasonable precautions and exercised all due diligence to avoid engaging in market abuse.")
 
219     Page 54, line 6, at end insert--
 
    ("(  )  If the Authority is entitled to impose a penalty on a person under this section it may, instead of imposing a penalty on him, publish a statement to the effect that he has engaged in market abuse.")
 
  
Clause 114
 
  
BY THE LORD McINTOSH OF HARINGEY
 
220     Page 54, line 19, at end insert--
 
    ("(  )  A statement issued under this section must include an indication of the circumstances in which the Authority is to be expected to regard a person as--
    (a)  having a reasonable belief that his behaviour did not amount to market abuse; or
    (b)  having taken reasonable precautions and exercised due diligence to avoid engaging in market abuse.")
 
  
Clause 116
 
  
BY THE LORD McINTOSH OF HARINGEY
 
221     Page 55, line 13, leave out ("impose a penalty on") and insert ("take action against") 
  
Clause 117
 
  
BY THE LORD McINTOSH OF HARINGEY
 
222     Page 55, line 20, leave out ("impose a penalty on") and insert ("take action against") 
223     Page 55, line 27, leave out ("impose a penalty on") and insert ("take action against") 
  
Clause 121
 
  
BY THE LORD McINTOSH OF HARINGEY
 
224     Page 56, leave out lines 37 and 38 
225     Page 56, line 41, at end insert--
 
    ("(  )  Subsections (1) to (3) do not apply to Scotland.
 
    (  )  In relation to Scotland, the Lord Advocate may from time to time, after consultation with the Treasury, issue written guidance for the purpose of helping the Authority to determine the action to be taken in cases where behaviour mentioned in subsection (1) occurs.")
 
  
Schedule 12
 
  
BY THE LORD McINTOSH OF HARINGEY
 
226     Page 254, line 7, leave out sub-paragraph (6) 
  
Clause 124
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
226A     Page 57, line 30, at beginning insert ("The Authority shall not take any action pursuant to a decision notice during the period referred to in subsection (1) and") 
  
Clause 125
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
226B     Page 58, line 6, leave out ("under section 117(4)") 
  
Clause 127
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
226C     Page 59, line 10, leave out paragraphs (b) and (c) 
  
Clause 129
 
  
BY THE LORD McINTOSH OF HARINGEY
 
227     Page 60, line 8, leave out from ("of") to end of line 15 and insert ("consumers.") 
  
BY THE BARONESS TURNER OF CAMDEN
 
228     Page 60, line 17, at end insert--
 
    ("(  )  The Authority may make rules under this section to require authorised persons to advise and inform persons referred to in subsection (1) about matters arising during the course of their use of the services referred to in that subsection.")
 
  
BY THE LORD McINTOSH OF HARINGEY
 
229     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.")
 
 
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