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Amendments to the Financial Services and Markets Bill

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

Here you can browse the Third Marshalled List of Amendments to the Financial Services and Markets Bill to be moved on Report in the House of Lords.

     The amendments have been marshalled in accordance with the Order of 12th April 2000, as follows-- 
  Clauses 131 to 158
Schedule 14
Clauses 159 to 161
Schedule 15
Clauses 162 to 199
Schedule 16
Clauses 200 to 221
Schedule 17
Clauses 222 to 329
Schedule 18
Clauses 330 to 421
Schedules 19 to 21
Clause 422
 
 [Amendments marked * are new or have been altered] 
Amendment
No.
 
  
Clause 131
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
149A     Page 63, line 16, leave out ("under section 123(4)") 
  
Clause 133
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
149B     Page 64, line 20, leave out paragraphs (b) and (c) 
  
Clause 135
 
  
BY THE LORD HUNT OF WIRRAL
 
150     Page 66, line 5, after ("from,") insert ("dependent on,") 
151     Page 66, line 5, leave out from ("to,") to end of line 6 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
151ZA     Page 66, line 9, after ("trustee,") insert ("for the purposes of subsection (7)") 
  
After Clause 135
 
  
BY THE LORD JOFFE
THE LORD PHILLIPS OF SUDBURY
 
151A     Insert the following new Clause-- 
     ("  .  The Authority shall make rules requiring an authorised person who is a body corporate who has permission to carry on regulated long-term insurance business to secure that the composition of the body's Board of Directors is such as to give a fair degree of representation to with-profit policyholders.")Long-term insurance business rules: representation of policyholders.
  
Clause 140
 
  
BY THE LORD McINTOSH OF HARINGEY
 
152     Page 68, line 24, leave out ("subsection (4) applies") and insert ("subsections (3) and (4) apply") 
  
Clause 142
 
  
BY THE LORD McINTOSH OF HARINGEY
 
153     Page 69, line 33, leave out from ("communication") to end of line 34 and insert ("by them, or their approval of the communication by others, of invitations or inducements--
    (a)  to engage in investment activity; or
    (b)  to participate in a collective investment scheme.")
 
154     Page 69, line 37, leave out paragraph (b) 
155     Page 69, line 38, at end insert--
 
    ("(  )  Subsection (1) applies only to communications which--
    (a)  if made by a person other than an authorised person, without the approval of an authorised person, would contravene section 19(1);
    (b)  may be made by an authorised person without contravening section 234(1).
    (  )  Engage in investment activity" has the same meaning as in section 19.")
 
  
After Clause 143
 
  
BY THE LORD McINTOSH OF HARINGEY
 
156     Insert the following new Clause-- 
     (".--(1) The Authority may make rules ("control of information rules") requiring an authorised person ("A") to withhold information from a person ("B") for or with whom he does business in the course of carrying on any regulated or other activity.
 
    (2)  Control of information rules may--
    (a)  require the withholding of information which A would otherwise have a legal obligation to disclose to B;
    (b)  require A to restrict or prevent the passing of information within his business.
    (3)  Subsection (1) applies only in relation to information obtained from a person other than B in the course of the carrying on by A of any activity, whether it was obtained by A, by an approved person or by any other person.
 
    (4)  Approved person" has the same meaning as in section 63.")
Control of information.
  
Clause 144
 
  
BY THE LORD McINTOSH OF HARINGEY
 
157     Page 70, line 6, at end insert--
    ("(  )  control of information rules;")
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157KA     Page 70, line 16, at end insert ("and must be determined by the Authority before the end of the period of 30 days beginning with the date on which the application is received") 
157LA     Page 70, line 19, after ("not") insert ("or would be unlikely to") 
157MA     Page 70, line 22, at end insert--
 
    ("(4A)  For the purposes of subsection (4)(a), the Authority must take into account--
    (a)  the nature of the business carried on or proposed to be carried on by the authorised person to whom the rules in question apply; and
    (b)  the persons or class of persons with whom the authorised person carries on or intends to carry on such business.")
 
157NA     Page 70, line 23, at end insert--
 
    ("(5A)  If the Authority decides not to give a direction following an application by an authorised person under this section, it must provide the applicant with an explanation in writing of its decision.")
 
157PA     Page 71, line 2, at end insert--
 
    ("(9A)  Before a revocation of a direction under subsection (9)(a) takes effect, the Authority must give the authorised person concerned notice in writing of the revocation at least seven days before it takes effect and such notice must set out the reasons for revoking the direction.
 
    (9B)  Subsection (9A) does not apply if the authorised person concerned has consented to the revocation or the Authority considers that it is desirable, in the interests of persons using, or likely to use, a service provided by the authorised person in carrying on a regulated activity for it to revoke the direction without delay.")
 
  
Clause 147
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157QA     Page 71, line 39, leave out ("made by the Authority") 
  
Clause 151
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157RA     Page 73, line 2, at end insert ("together with an explanation of the methodology employed in carrying out the analysis") 
157SA     Page 73, line 26, at end insert ("save that, in this event, the Authority must publish the information referred to in subsections (2)(a), (b) and (c) at the same time as or as soon as practicable after making the rules in question") 
157TA     Page 73, line 43, at end insert--
 
    ("(10A)  In subsection (10) "benefits" include any increase in business activity which is expected to arise if the proposed rules are made.")
 
  
Clause 152
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157UA     Page 74, line 11, at end insert--
 
    ("(3)  The Authority must as soon as practicable after the third anniversary of the making of any rules under this Part carry out a cost benefit analysis of those rules.
 
    (4)  The Authority must publish the cost benefit analysis carried out under subsection (3) in the way appearing to it to be best calculated to bring it to the attention of the public.
 
    (5)  Cost benefit analysis" means an estimate of the costs together with an analysis of the benefits that will arise if the rules continue in force.")
 
  
After Clause 152
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157VA     Insert the following new Clause-- 
     ("  .--(1)  A person who is subject to control of information rules ("A") incurs no liability to a person ("B") for or with whom he does business in the course of carrying on any regulated activity--
    (a)  for failing to make information in his possession available to, or to use such information for the benefit of B; or
    (b)  for failing, by not availing himself of such information, to avoid a conflict of interest between himself and B or between B and another person with whom A does business in the course of carrying on any regulated activity,
if A shows that the failure is due to arrangements made by A which comply with the provisions of such rules.
 
    (2)  Where A lawfully carries on any activity in connection with A's regulated activity subsection (1) shall apply to A as if references in that subsection to a person with whom he does business in the course of carrying on a regulated activity were references to a person with whom he does business in the course of carrying on either of those activities.
 
    (3)  Subsection (1)--
    (a)  does not exonerate A if A has expressly agreed that all information in A's possession is to be made available or used by A for the benefit of B or that any such conflict of interest as is mentioned in subsection (1)(b) is to be avoided by A; and
    (b)  is without prejudice to any defence available apart from that subsection.
    (4)  References in subsection (1) to control of information rules include references to any other rules made for the purposes of the matters mentioned in section (Control of information) by rules made under this Part.
 
    (5)  The provisions of this section shall be deemed always to have had effect.")
Control of information rules.
  
Clause 153
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157WA     Page 74, line 33, at end insert--
 
    ("(4A)  Subsection (4)(c) shall not apply if the request is made by or on behalf of an authorised person or an approved person within the meaning of section 63(13).")
 
157XA     Page 74, line 36, at end insert--
 
    ("(5A)  An authorised person who acts in compliance with guidance given by the Authority under this section shall not be treated as contravening the rules to which such guidance relates or as thereby contravening rules.")
 
  
After Clause 154
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157YA     Insert the following new Clause-- 
 ("CHAPTER IIA 
 POLICIES RELATING TO TAKEOVER REGULATION 
     .--(1)  Subject to subsections (2) and (3), the code issued under section 116 may state that behaviour of a person which is in conformity with the City Code does not amount to market abuse.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in section 115(2)(a).
 
    (3)  A statement made under subsection (1) may include such conditions and limitations as the Authority considers appropriate, including conditions and limitations concerning the categories of behaviour and classes of person covered by the statement.
 
    (4)  If a person behaves in a way which fulfils the requirements of any statement included pursuant to subsection (1) in the code issued under section 116, that behaviour of his is to be taken, for the purposes of this Act, as not amounting to market abuse.")
Market abuse: behaviour conforming with City Code.
157ZA     Insert the following new Clause-- 
     ("  .--(1)  Subject to subsections (2) and (3), the Authority may adopt a policy that it will not exercise its powers under sections 119, 126, 375, 377 and 378 in respect of behaviour which is not in conformity with the City Code except following a request by the Panel that the Authority consider whether to exercise such powers.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in section 115(2)(a).
 
    (3)  A policy adopted under subsection (1) may include such conditions and limitations as the Authority considers appropriate, including conditions and limitations concerning the categories of behaviour and classes of person covered by the policy.
 
    (4)  Where the Authority has adopted a policy under subsection (1), such policy shall be recorded in a statement issued under this section; and the provisions of section 120(7) to (9) shall apply to a statement issued under this section.
 
    (5)  The Authority shall not exercise its powers under sections 119, 126, 375, 377 and 378 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 any thing 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 Part--
    behaviour of a person which is in conformity with the City Code" means behaviour of a person which in the opinion of the Panel conforms with the responsibilities imposed on that person by the City Code;
    behaviour which is not in conformity with the City Code" means behaviour of a person which in the opinion of the Panel does not conform with the responsibilities imposed on that person by the City Code;
    the opinion of the Panel" includes any revised opinion formed by the Panel as a result of any further consideration;
    City Code" means the City Code on Takeovers and Mergers issued by the Panel as applied by the Panel and as amended from time to time by the Panel;
    the Panel" means the Panel on Takeover and Mergers.")
Market abuse: statements of policy relating to City Code.
  
Clause 155
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
157A     Page 75, line 15, at end insert--
    (""competition" includes competition between authorised persons, or particular classes of authorised persons, and the competitive position of the United Kingdom;")
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158     Page 75, line 30, after ("have") insert (", or are intended or likely to have,") 
  
Clause 157
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158A     Page 76, line 42, leave out from ("control") to end of line 43 
158B     Page 77, line 6, at end insert--
 
    ("(  )  A requirement may be imposed under subsection (2) or (3)(a) only in respect of documents or information which relate to any matter relevant to the investigation.")
 
158BA     Page 77, line 13, leave out ("punish") and insert ("deal with") 
158BB     Page 77, line 14, leave out ("had been guilty of contempt of court") and insert ("were in contempt") 
  
Clause 161
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158BC     Page 80, line 14, leave out ("without delay") and insert ("before the end of such reasonable period as may be specified") 
 
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