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

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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.
  
Clause 109
 
  
BY THE LORD KINGSLAND
 
208A     Page 51, line 1, leave out from ("which") to ("the") in line 3 and insert ("falls below") 
208B     Page 51, line 4, leave out ("a person") and insert ("the person or persons concerned") 
  
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 KINGSLAND
 
212B     Page 51, line 20, after ("which") insert ("that behaviour conformed with the then generally accepted market practice or") 
  
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 KINGSLAND
 
215A     Page 54, line 1, after ("If") insert ("the court on the application of") 
  
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 KINGSLAND
 
219A     Page 54, line 8, leave out ("of its policy") and insert ("containing such provisions as the Authority considers will give appropriate guidance to a court as to the appropriate policy to be followed by the court") 
  
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 KINGSLAND
 
220A     Page 55, line 13, after ("to") insert ("apply to the court to") 
  
BY THE LORD McINTOSH OF HARINGEY
 
221     Page 55, line 13, leave out ("impose a penalty on") and insert ("take action against") 
  
BY THE LORD KINGSLAND
 
221A     Page 55, line 15, at end insert ("which the Authority will apply to the court to impose") 
  
Clause 117
 
  
BY THE LORD McINTOSH OF HARINGEY
 
222     Page 55, line 20, leave out ("impose a penalty on") and insert ("take action against") 
  
BY THE LORD KINGSLAND
 
222A     Page 55, line 20, leave out from ("to") to end of line 28 and insert ("apply to the court to impose a penalty on a person under section 113, it must first notify him in writing") 
  
BY THE LORD McINTOSH OF HARINGEY
 
223     Page 55, line 27, leave out ("impose a penalty on") and insert ("take action against") 
 
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