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

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Clause 164
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158BD     Page 82, line 14, leave out ("the Authority") and insert ("an investigating authority") 
158BE     Page 82, line 16, leave out paragraph (a) 
158BF     Page 82, line 21, leave out paragraphs (d) and (e) 
158BG     Page 82, line 24, leave out paragraphs (f) to (l) 
158BH     Page 82, line 39, leave out ("the Authority") and insert ("an investigating authority") 
158BJ     Page 83, line 2, leave out ("Authority") and insert ("investigating authority") 
158BK     Page 83, line 4, leave out subsections (4) and (5) and insert--
 
    ("(4)  Subsection (5) applies if it appears to the Authority that there are circumstances suggesting that--
    (a)  a person may have contravened section 18;
    (b)  a person may be guilty of an offence under any enactment other than this Act--
          (i)  which the Authority has power to prosecute under this Act; but
          (ii)  which it would not otherwise have power to investigate;
    (c)  an authorised person may have contravened a rule made by the Authority;
    (d)  an individual may not be a fit and proper person to perform functions in relation to a regulated activity carried on by an authorised or exempt person;
    (e)  an individual may have performed or agreed to perform a function in breach of a prohibition order;
    (f)  an authorised or exempt person may have failed to comply with section 55(5);
    (g)  an authorised person may have failed to comply with section 58(1) or (2);
    (h)  a person in relation to whom the Authority has given its approval under section 58 may not be a fit and proper person to perform the function to which that approval relates; or
    (i)  a person may be guilty of misconduct for the purposes of section 65.
    (5)  The Authority may appoint one or more competent persons to conduct an investigation on its behalf.
 
    (6)  Investigating authority" means the Authority or the Secretary of State.")
 
  
Clause 165
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158BL     Page 83, line 22, leave out ("a person") and insert ("one or more competent persons") 
158BM     Page 83, line 24, leave out ("(so far as relating to") and insert ("(as a result of") 
  
Clause 166
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158BN     Page 84, line 25, leave out ("the Authority") and insert ("an investigating authority") 
158BP     Page 84, line 26, after (" 164(3)") insert ("or (5)") 
158BQ     Page 84, line 28, leave out paragraph (b) 
158BR     Page 84, line 35, after (" 164(1)") insert ("or (4)") 
158BS     Page 84, line 39, leave out from ("(2)") to second ("of") in line 40 
  
Clause 168
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158BT     Page 86, line 18, leave out from ("appointed") to end of line 20 and insert ("as a result of subsection (1) or (4) of section 164") 
  
Clause 169
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158BU     Page 86, line 35, leave out ("or (4)") 
158BV     Page 86, line 36, leave out ("(so far as relating to") and insert ("(as a result of") 
  
Clause 170
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158C     Page 87, line 1, leave out ("a") and insert ("that") 
158D     Page 87, line 1, at end insert ("or to disciplinary measures taken against that person under Part XIV") 
  
BY THE LORD McINTOSH OF HARINGEY
 
158DA     Page 87, line 15, leave out ("(4)") and insert ("(5)") 
  
Clause 171
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158DB     Page 88, line 10, leave out ("(4)") and insert ("(5)") 
  
Clause 172
 
  
BY THE LORD McINTOSH OF HARINGEY
 
158DC     Page 89, line 31, leave out ("(4)") and insert ("(5)") 
  
Clause 174
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158E     Page 90, leave out lines 27 and 28 and insert ("Before a person can acquire") 
158EA     Page 90, leave out lines 27 and 28 and insert ("A person may not acquire") 
158EB     Page 90, leave out line 33 and insert ("unless he has first notified the Authority") 
158EC     Page 90, line 34, leave out ("step") and insert ("action") 
  
Clause 175
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158F     Page 91, line 38, at end insert ("except that an agreement or arrangement is not within subsection (4)(g) of section 412 if the agreement or arrangement is for one person ("X") to acquire, hold or dispose of shares or other interests as agent or nominee on behalf of another person ("Y") without X being able to exercise, or control the exercise of, voting rights otherwise than at the direction of Y") 
158G     Page 91, line 38, at end insert ("except that an agreement or arrangement is not within subsection (4)(g) of section 412 if the agreement or arrangement is for one person ("X") to acquire, hold or dispose of shares or other interests as agent or nominee on behalf of another person ("Y") without X being able to exercise, or control the exercise of, voting rights otherwise than at the discretion of Y") 
  
Clause 186
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158H     Page 97, leave out lines 6 and 7 and insert--
 
    ("A controller of a UK authorised person may not")
 
158J     Page 97, line 8, leave out ("ceasing") and insert ("cease") 
158K     Page 97, line 10, leave out ("reducing") and insert ("reduce") 
158L     Page 97, leave out line 11 and insert ("unless he has first notified the Authority") 
158M     Page 97, line 13, leave out ("step") and insert ("action") 
  
Clause 187
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
158N     Page 97, line 33, leave out ("carries out the proposal") and insert ("acquires the control") 
  
Clause 188
 
  
BY THE LORD McINTOSH OF HARINGEY
 
159     Page 98, line 30, at end insert--
    ("(  )  provide for exemptions from the obligations to notify imposed by sections 174 and 186;")
 
  
Clause 196
 
  
BY THE LORD McINTOSH OF HARINGEY
 
160     Page 103, line 28, after ("power") insert ("of the Authority on its own initiative") 
161     Page 103, line 28, leave out ("or vary") 
  
Clause 206
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
161TA     Page 106, line 32, at end insert ("and
    (c)  the circumstances in which the Authority will take disciplinary measures under this Part.")
 
161UA     Page 106, line 33, after ("determining") insert ("whether to take disciplinary action, and if so,") 
161VA     Page 106, line 39, at end insert ("; and
    (d)  whether the person who has contravened a requirement brought the matter to the Authority's attention")
 
  
After Clause 207
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
161WA     Insert the following new Clause-- 
     ("  .--(1)  The Authority must, in the exercise of its rulemaking powers under Part X of this Act, make rules applying to the exercise of the Authority's disciplinary powers under this Part which comply with the following subsections.
 
    (2)  The Authority must maintain a committee to be known as the Enforcement Committee which must be empowered to take decisions on behalf of the Authority under this Part.
 
    (3)  The Enforcement Committee must include both practitioner and consumer respresentatives who may be members of the Practitioner and Consumer Panels respectively.
 
    (4)  The members of the Enforcement Committee, including its chairman, must be appointed by the governing body of the Authority.
 
    (5)  The chairman of the Enforcement Committee must be a person appearing to the Authority to have appropriate experience in financial services regulation and compliance.
 
    (6)  No member of the Enforcement Committee, other than the chairman, may be an employee of the Authority, and no member may participate in any matter in respect of which he has any interest or prior involvement.
 
    (7)  An authorised person who has received a warning notice may make representations to the Enforcement Committee orally or in writing and, if he so chooses, with legal representation.
 
    (8)  Representatives of the Authority may attend the Enforcement Committee and make representations on the same basis.
 
    (9)  If, during proceedings before the Enforcement Committee, either the authorised person or the Authority requests that the matter which is the subject of a warning notice is to be referred to mediation, then the other party shall accede to this request, and the chairman of the Enforcement Committee shall proceed to make such arrangements for mediation as appear to him to be appropriate in the circumstances.
 
    (10)  If, in the light of any representations made before it and the outcome of any mediation--
    (a)  the Enforcement Committee decides not to issue a decision notice, it must notify the authorised person accordingly and the antecedent warning notice shall be of no effect; or
    (b)  the Enforcement Committee decides to issue a decision notice, it must take effect in the terms of section 204.")
Enforcement Committee.
  
Clause 211
 
  
BY THE LORD HUNT OF WIRRAL
 
161XA     Page 110, line 21, at end insert ("; and
    (  )  for transferring to the scheme manager a right of recovery against that person")
 
  
Clause 224
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
161YA     Page 118, line 18, leave out subsections (4) to (7) and insert--
 
    ("(4)  The ombudsman's determination shall be binding on the respondent and the complainant and shall be final.
 
    (5)  The ombudsman's statement must--
    (a)  give the ombudsman's reasons for his determination; and
    (b)  be signed by him.")
 
161ZA     Page 118, line 37, leave out subsection (2) and insert--
 
    ("(2)  The ombudsman may only make a determination in favour of a complainant where the ombudsman is satisfied that the respondent has breached a rule or failed to satisfy a legal obligation or duty owed to the complainant.")
 
  
Clause 225
 
  
BY THE LORD HUNT OF WIRRAL
THE LORD DONALDSON OF LYMINGTON
THE LORD BORRIE
THE LORD PHILLIPS OF SUDBURY
 
161A     Page 119, line 1, leave out subsections (3) and (4) and insert--
 
    ("(3)  Whether or not a court could make such an order, a money award may require the respondent to pay a sum in respect of--
    (a)  financial loss suffered by the complainant;
    (b)  other circumstances for which the complainant should fairly be compensated.
    (4)  The Authority may specify the maximum amount which may be awarded under subsection (3)(b).")
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
161B     Page 119, line 3, at end insert ("or negligence") 
  
Clause 226
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
161C     Page 119, line 32, leave out subsections (3) and (4) and insert--
 
    ("(3)  Costs rules may provide for the making of an award against the complainant in respect of the respondent's costs if in the opinion of the ombudsman--
    (a)  the complainant's conduct was improper or unreasonable; or
    (b)  the complainant was responsible for an unreasonable delay.
    (4)  Costs rules may authorise an ombudsman, if he is of the opinion described in subsection (3), to make an award against the complainant in favour of the scheme operator for the purpose of providing a contribution to resources deployed in dealing with the complaint in addition to or in substitution for an award in respect of the respondent's costs.")
 
  
BY THE LORD NEWBY
THE LORD SHARMAN
 
162     Page 119, line 34, leave out subsection (4) 
  
Clause 232
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
162A     Page 122, line 28, at end insert--
 
    ("(4A)  In determining whether the investment condition is satisfied, participation in the scheme shall be deemed to take place either at the time shares in, or securities of, BC first become available for purchase or subscription by investors or on any occasion thereafter on which the arrangements constituting BC are changed to a material extent.")
 
 
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