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

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Clause 44
 
  
BY THE LORD McINTOSH OF HARINGEY
 
102     Page 19, line 28, leave out ("acting under section 43") and insert ("exercising its own-initiative power") 
  
Clause 45
 
  
BY THE LORD McINTOSH OF HARINGEY
 
103     Page 19, line 38, leave out from ("Authority's") to ("may") in line 40 and insert ("own-initiative power") 
  
Clause 46
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
104     Page 21, line 15, after ("A") insert ("or contravene any other obligation or duty the institution may owe A") 
105     Page 21, line 20, after ("instruction") insert ("without reasonable excuse") 
106     Page 21, line 31, leave out ("the") and insert ("A's") 
106A*     Page 21, line 34, leave out ("A") and insert ("the Authority") 
  
Clause 50
 
  
BY THE LORD McINTOSH OF HARINGEY
 
107     Page 23, line 19, leave out subsection (4) and insert--
 
    ("(4)  If the Authority grants an application for, or for variation of, a Part IV permission, it must give the applicant written notice.
 
    (5)  The notice must state the date from which the permission, or the variation, has effect.
 
    (6)  If the Authority proposes--
    (a)  to give a Part IV permission but to exercise its power under section 40(7)(a) or (b) or 41(1), or
    (b)  to vary a Part IV permission on the application of an authorised person but to exercise its power under any of those provisions (as a result of section 42(5)),
it must give the applicant a warning notice.
 
    (7)  If the Authority proposes to refuse an application made under this Part, it must (unless subsection (8) applies) give the applicant a warning notice.
 
    (8)  This subsection applies if it appears to the Authority that--
    (a)  the applicant is an EEA firm; and
    (b)  the application is made with a view to carrying on a regulated activity in a manner in which the applicant is, or would be, entitled to carry on that activity in the exercise of an EEA right whether through a United Kingdom branch or by providing services in the United Kingdom.
    (9)  If the Authority decides--
    (a)  to give a Part IV permission but to exercise its power under section 40(7)(a) or (b) or 41(1),
    (b)  to vary a Part IV permission on the application of an authorised person but to exercise its power under any of those provisions (as a result of section 42(5)), or
    (c)  to refuse an application under this Part,
it must give the applicant a decision notice.")
 
  
Clause 51
 
  
BY THE LORD McINTOSH OF HARINGEY
 
108     Leave out Clause 51 
  
After Clause 51
 
  
BY THE LORD McINTOSH OF HARINGEY
 
109     Insert the following new Clause-- 
     ("  .--(1)  This section applies to an exercise of the Authority's own-initiative power to vary an authorised person's Part IV permission.
 
    (2)  A variation takes effect--
    (a)  immediately, if the notice given under subsection (4) states that that is the case;
    (b)  on such date as may be specified in the notice; or
    (c)  if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
    (3)  A variation may be expressed to take effect immediately (or on a specified date) only if the Authority, having regard to the ground on which it is exercising its own-initiative power, reasonably considers that it is necessary for the variation to take effect immediately (or on that date).
 
    (4)  If the Authority proposes to vary the Part IV permission, or varies it with immediate effect, it must give the authorised person written notice.
 
    (5)  The notice must--
    (a)  give details of the variation;
    (b)  state the Authority's reasons for the variation and for its determination as to when the variation takes effect;
    (c)  inform the authorised person that he may make representations to the Authority within such period as may be specified in the notice (whether or not he has referred the matter to the Tribunal);
    (d)  inform him of when the variation takes effect; and
    (e)  inform him of his right to refer the matter to the Tribunal.
    (6)  The Authority may extend the period allowed under the notice for making representations.
 
    (7)  If, having considered any representations made by the authorised person, the Authority decides--
    (a)  to vary the permission in the way proposed, or
    (b)  if the permission has been varied, not to rescind the variation,
it must give him written notice.
 
    (8)  If, having considered any representations made by the authorised person, the Authority decides--
    (a)  not to vary the permission in the way proposed,
    (b)  to vary the permission in a different way, or
    (c)  to rescind a variation which has effect,
it must give him written notice.
 
    (9)  A notice given under subsection (7) must inform the authorised person of his right to refer the matter to the Tribunal.
 
    (10)  A notice under subsection (8)(b) must comply with subsection (5).
 
    (11)  If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
 
    (12)  For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 386(6A).")
Exercise of
own-initiative
power to vary
Part IV
permission:
procedure.
110     Insert the following new Clause-- 
     ("  .--(1)  If the Authority proposes to cancel an authorised person's Part IV permission otherwise than at his request, it must give him a warning notice.
 
    (2)  If the Authority decides to cancel an authorised person's Part IV permission otherwise than at his request, it must give him a decision notice.")
Cancellation of
Part IV
permission:
procedure.
  
Clause 52
 
  
BY THE LORD McINTOSH OF HARINGEY
 
111     Leave out Clause 52 
  
Clause 53
 
  
BY THE LORD McINTOSH OF HARINGEY
 
112     Leave out Clause 53 
  
Clause 55
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
112A*     Page 25, line 11, at end insert--
 
    ("(4A)  In proceedings for an offence under subsection (4) it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.")
 
112B*     Page 25, line 15, at end insert--
 
    ("(  )  An authorised person ("A") who contracts with another person ("B") for the performance of any function of A shall be deemed to have taken the reasonable care required by subsection (5) if B agrees in the contract between them to observe the provision of that subsection.")
 
  
Clause 57
 
  
BY THE LORD McINTOSH OF HARINGEY
 
113     Page 26, line 1, leave out ("refuses") and insert ("decides to refuse") 
114     Page 26, line 3, leave out ("application is refused, the applicant") and insert ("Authority gives the applicant a decision notice, he") 
  
Clause 58
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
114A*     Page 26, line 15, at end insert-- 
     ("(  )  A shall be deemed to have taken reasonable care required by subsection (2) if the contractor is an authorised person and agrees in the contract between them to observe the provision of that subsection.") 
  
Clause 60
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
114B*     Page 27, line 34, leave out ("three months") and insert ("one month") 
  
Clause 61
 
  
BY THE LORD McINTOSH OF HARINGEY
 
115     Page 28, line 14, leave out ("refuses") and insert ("decides to refuse") 
  
Clause 63
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
115A*     Page 29, line 4, leave out ("may") and insert ("shall") 
  
Clause 64
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
115B*     Page 30, line 25, at end insert ("save that in this event the Authority shall--
    (a)  publish the statement with--
          (i)  a cost benefit analysis; and
          (ii)  notice that representations about the statement or code may be made to the Authority within a specified time,
    (b)  have regard to any representations made to it in accordance with paragraph (a)(ii) in determining whether to amend the statement or code,
    (c)  publish in general terms the representations made to it in accordance with paragraph (a)(ii) and its responses to them)
 
  
Clause 65
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
115C*     Page 31, line 8, at end insert--
 
    ("(2A)  A person is knowingly concerned in a contravention by an authorised person for the purposes of subsection (2)(b) when he knows that the relevant authorised person is contravening a requirement imposed on that person by or under this Act.")
 
115D*     Page 31, line 27, at end insert--
 
    ("(8)  In an action brought by the Authority against a person under this section, it shall be a defence for a person to show that he took all reasonable precautions and exercised all due diligence to comply with the statement of principle in question, or to avoid contravention by the relevant authorised person of a requirement imposed by or under this Act, as the case may be.")
 
  
Clause 67
 
  
BY THE LORD McINTOSH OF HARINGEY
 
116     Leave out Clause 67 
  
Clause 68
 
  
BY THE LORD McINTOSH OF HARINGEY
 
117     Page 32, line 13, leave out subsection (2) 
  
Clause 76
 
  
BY THE LORD McINTOSH OF HARINGEY
 
118     Page 35, line 19, leave out ("refused") and insert ("decided to refuse") 
119     Page 35, line 19, at end insert--
 
    ("(  )  If the competent authority decides to grant an application for listing, it must give the applicant written notice.
 
    (  )  If the competent authority proposes to refuse an application for listing, it must give the applicant a warning notice.
 
    (  )  If the competent authority decides to refuse an application for listing, it must give the applicant a decision notice.
 
    (  )  If the competent authority decides to refuse an application for listing, the applicant may refer the matter to the Tribunal.")
 
  
After Clause 77
 
  
BY THE LORD McINTOSH OF HARINGEY
 
120     Insert the following new Clause-- 
     ("  .--(1)  A discontinuance or suspension takes effect--
    (a)  immediately, if the notice under subsection (2) states that that is the case;
    (b)  in any other case, on such date as may be specified in that notice.
    (2)  If the competent authority--
    (a)  proposes to discontinue or suspend the listing of securities, or
    (b)  discontinues or suspends the listing of securities with immediate effect,
it must give the issuer of the securities written notice.
 
    (3)  The notice must--
    (a)  give details of the discontinuance or suspension
    (b)  state the competent authority's reasons for the discontinuance or suspension and for choosing the date on which it took effect or takes effect;
    (c)  inform the issuer of the securities that he may make representations to the competent authority within such period as may be specified in the notice (whether or not he has referred the matter to the Tribunal);
    (d)  inform him of the date on which the discontinuance or suspension took effect or will take effect; and
    (e)  inform him of his right to refer the matter to the Tribunal.
    (4)  The competent authority may extend the period within which representations may be made to it.
 
    (5)  If, having considered any representations made by the issuer of the securities, the competent authority decides--
    (a)  to discontinue or suspend the listing of the securities, or
    (b)  if the discontinuance or suspension has taken effect, not to cancel it,
the competent authority must give the issuer of the securities written notice.
 
    (6)  A notice given under subsection (5) must inform the issuer of the securities of his right to refer the matter to the Tribunal.
 
    (7)  If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
 
    (8)  If the competent authority decides--
    (a)  not to discontinue or suspend the listing of the securities, or
    (b)  if the discontinuance or suspension has taken effect, to cancel it,
the competent authority must give the issuer of the securities written notice.
 
    (9)  The effect of cancelling a discontinuance is that the securities concerned are to be readmitted, without more, to the official list.
 
    (10)  If the competent authority has suspended the listing of securities and proposes to refuse an application by the issuer of the securities for the cancellation of the suspension, it must give him a warning notice.
 
    (11)  The competent authority must, having considered any representations made in response to the warning notice--
    (a)  if it decides to refuse the application, give the issuer of the securities a decision notice;
    (b)  if it grants the application, give him written notice of its decision.
    (12)  If the competent authority decides to refuse an application for the cancellation of the suspension of listed securities, the applicant may refer the matter to the Tribunal.
 
    (13)  Discontinuance" means a discontinuance of listing under section 77(1).
 
    (14)  Suspension" means a suspension of listing under section 77(2).")
Discontinuance or
suspension:
procedure.
 
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