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

back to previous amendments
 
  
After Clause 301
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170CD     Insert the following new Clause-- 
     (".--(1) The Director must keep under review the regulatory provisions and practices of recognised bodies.
 
    (2)  If at any time the Director considers that--
    (a)  a regulatory provision or practice has a significantly adverse effect on competition, or
    (b)  regulatory provisions or practices, or a combination of regulating provisions and practices have such an effect,
he must make a report.
 
    (3)  If at any time the Director considers that--
    (a)  a regulatory provision or practice does not have a significantly adverse effect on competition, or
    (b)  regulatory provisions or practices, or a combination of regulatory provisions and practices do not have any such effect,
he may make a report to that effect.
 
    (4)  A report under subsection (2) must contain details of the adverse effect on competition.
 
    (5)  If the Director makes a report under subsection (2), he must--
    (a)  send a copy of it to the Treasury, to the Competition Commission and to the Authority; and
    (b)  publish it in the way appearing to him to be best calculated to bring it to the attention of the public.
    (6)  If the Director makes a report under subsection (3)--
    (a)  he must send a copy of it to the Treasury, to the Competition Commission and to the Authority; and
    (b)  he may publish it.
    (7)  Before publishing a report under this section, the Director must, so far as practicable exclude any matter which relates to the private affairs of a particular individual the publication of which, in the opinion of the Director, would or might seriously and prejudicially affect his interests.
 
    (8)  Before publishing such a report, the Director must exclude any matter which relates to the affairs of a particular body the publication of which, in the opinion of the Director, would or might seriously and prejudicially affect its interests.
 
    (9)  Subsections (7) and (8) do not apply to the copy of a report which the Director is required to send to the Treasury, the Competition Commission and the Authority under subsection (5)(a) or (6)(a).
 
    (10)  For the purposes of the law of defamation, absolute privilege attaches to any report of the Director under this section.")
Further reports by Director General of Fair Trading.
  
Clause 302
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170CE     Leave out Clause 302 
  
Clause 303
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170CF     Leave out Clause 303 
  
Clause 304
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170CG     Page 160, line 40, leave out ("302") and insert ("(Further reports by Director General of Fair Trading)") 
170CH     Page 161, line 3, leave out from ("control") to end of line 4 
170CJ     Page 161, line 10, 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.")
 
170CK     Page 161, line 20, leave out from ("Court;") to ("Scotland") in line 21 and insert ("or
    (b)  in")
 
  
After Clause 304
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170D     Insert the following new Clause-- 
 ("Role of the Competition Commission 
     .--(1) If subsection (2) or (3) applies, the Commission must investigate the matter which is the subject of the Director's report.
 
    (2)  This subsection applies if the Director sends to the Competition Commission a report--
    (a)  issued by him under section 301(2) which concludes that one or more regulatory provisions have a significantly adverse effect on competition, or
    (b)  issued by him under section (Further reports by Director General of Fair Trading)(2).
    (3)  This subsection applies if the Director asks the Commission to consider a report--
    (a)  issued by him under section 301(2) which concludes that one or more regulatory provisions do not have a significantly adverse effect on competition, or
    (b)  made by him under section (Further reports by Director General of Fair Trading)(3).
    (4)  The Commission must then make its own report on the matter unless it considers that, as a result of a change of circumstances, no useful purpose would be served by a report.
 
    (5)  If the Commission decides in accordance with subsection (4) not to make a report, it must make a statement setting out the change of circumstances which resulted in that decision.
 
    (6)  A report made under this section must state the Commission's conclusion as to whether--
    (a)  the regulatory provision or practice which is the subject of the report has a significantly adverse effect on competition, or
    (b)  the regulatory provisions or practices or combination of regulatory provisions and practices which are the subject of the report have such an effect.
    (7)  A report under this section stating the Commission's conclusion that there is a significantly adverse effect on competition must also--
    (a)  state whether the Commission considers that that effect is justified; and
    (b)  if it states that the Commission considers that it is not justified, state its conclusion as to what action if any the Treasury ought to direct the Authority to take.
    (8)  Subsection (9) applies whenever the Commission is considering, for the purposes of this section, whether a particular adverse effect on competition is justified.
 
    (9)  The Commission must ensure, so far as that is reasonably possible, that the conclusion it reaches is compatible with the obligations imposed on the recognised body concerned by or under this Act.
 
    (10)  A report under this section must contain such an account of the Commission's reasons for its conclusions as is expedient, in the opinion of the Commission, for facilitating proper understanding of them.
 
    (11)  The provisions of Schedule 14 (except paragraph 2(b)) apply for the purposes of this section as they apply for the purposes of section 158.
 
    (12)  If the Commission makes a report under this section it must send a copy to the Treasury, the Authority and the Director.")
Consideration by Competition Commission.
170E     Insert the following new Clause-- 
 ("Role of the Treasury 
     .--(1) Subsection (2) applies if, on an application for a recognition order--
    (a)  the Director makes a report under section 301 but does not ask the Competition to consider it under section (Consideration by Competition Commission);
    (b)  the Competition Commission concludes--
          (i)  that the applicant's regulatory provisions do not have a significantly adverse effect on competition; or
          (ii)  that if those provisions do have that effect, the effect is justified.
    (2)  The Treasury may refuse to approve the making of the recognition order only if they consider that the exceptional circumstances of the case make it inappropriate for them to give their approval.
 
    (3)  Subsection (4) applies if, on an application for a recognition order, the Competition Commission concludes--
    (a)  that the applicant's regulatory provisions have a significantly adverse effect on competition; and
    (b)  that that effect is not justified.
    (4)  The Treasury must refuse to approve the making of the recognition order unless they consider that the exceptional circumstances of the case make it inappropriate for them to refuse their approval.")
Recognition orders: role of the Treasury.
170F     Insert the following new Clause-- 
     (".--(1) This section applies if the Competition Commission makes a report under section (Consideration by Competition Commission)(2) (other than a report on an application for a recognition order) which states the Commission's conclusion that there is a significantly adverse effect on competition.
 
    (2)  If the Commission's conclusion, as stated in the report, is that the adverse effect on competition is not justified, the Treasury must give a remedial direction to the Authority.
 
    (3)  But subsection (2) does not apply if the Treasury consider--
    (a)  that, as a result of action taken by the Authority or the recognised body concerned in response to the Commission's report, it is unnecessary for them to give a direction; or
    (b)  that the exceptional circumstances of the case make it inappropriate or unnecessary for them to do so.
    (4)  In considering the action to be specified in a remedial direction, the Treasury must have regard to any conclusion of the Commission included in the report because of section (Consideration by Competition Commission)(7)(b).
 
    (5)  Subsection (6) applies if--
    (a)  the Commission's conclusion, as stated in its report, is that the adverse effect on competition is justified; but
    (b)  the Treasury consider that the exceptional circumstances of the case require them to act.
    (6)  The Treasury may give a direction to the Authority requiring it to take such action--
    (a)  as they consider to be necessary in the light of the exceptional circumstances of the case; and
    (b)  as may be specified in the direction.
    (7)  If the action specified in a remedial direction is the giving by the Authority of a direction--
    (a)  the direction to be given must be compatible with the recognition requirements applicable to the recognised body in relation to which it is given; and
    (b)  subsections (3) and (4) of section 292 apply to it as if it were a direction given under that section.
    (8)  Remedial direction" means a direction requiring the Authority--
    (a)  to revoke the recognition order for the body concerned; or
    (b)  to give such directions to the body concerned as may be specified in it.")
Directions by the Treasury.
170G     Insert the following new Clause-- 
     (".--(1) If, in reliance on subsection (3)(a) or (b) of section (Directions by the Treasury), the Treasury decline to act under subsection (2) of that section, they must make a statement to that effect, giving their reasons.
 
    (2)  If the Treasury give a direction under section (Directions by the Treasury) they must make a statement giving--
    (a)  details of the direction; and
    (b)  if the direction is given under subsection (6) of that section, their reasons for giving it.
    (3)  The Treasury must--
    (a)  publish any statement made under this section in the way appearing to them best calculated to bring it to the attention of the public; and
    (b)  lay a copy of it before Parliament.")
Statements by the Treasury.
  
Clause 305
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170H     Page 161, line 22, leave out from beginning to ("such") in line 24 and insert--
 
    ("(1)  Subsection (2) applies if the Treasury are considering--
    (a)  whether to refuse their approval under section (Recognition orders: role of the Treasury);
    (b)  whether section (Directions by the Treasury)(2) applies; or
    (c)  whether to give a direction under section (Directions by the Treasury)(6).
    (2)  The Treasury must--
    (a)  take")
 
170J     Page 161, line 29, leave out ("302;") and insert ("(Further reports by Director General of Fair Trading) or by the Competition Commission under section (Consideration by Competition Commission);") 
170K     Page 161, line 31, leave out ("299 or 300;") and insert ("(Recognition orders: role of the Treasury) or (Directions by the Treasury);") 
170L     Page 161, line 32, leave out ("had") 
  
Clause 306
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170M     Leave out Clause 306 
  
Clause 307
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170N     Page 162, line 42, leave out paragraph (b) 
170P     Page 163, line 1, leave out paragraph (b) 
170Q     Page 163, line 7, leave out ("contemplated") and insert ("encouraged") 
170R     Page 163, line 8, leave out from first ("practices") to end of line 9 
  
Clause 308
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170S     Page 163, line 21, leave out paragraph (b) 
170T     Page 163, line 25, leave out ("contemplated") and insert ("encouraged") 
  
Clause 309
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170U     Page 164, leave out lines 8 and 9 
170V     Page 164, line 12, leave out ("300(3);") and insert ("(Directions by the Treasury)(8);") 
  
Clause 313
 
  
BY THE LORD McINTOSH OF HARINGEY
 
170W     Page 166, line 23, leave out ("381") and insert ("380") 
  
Clause 315
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
170X     Page 167, line 20, at end insert ("; and
    (c)  an explanation of the Authority's reasons for making the proposed direction.")
 
170Y     Page 167, line 35, at end insert ("save that in this event the Authority shall publish the information referred to in subsections (2)(a) and (c) at the same time as publishing the direction in question") 
  
Clause 317
 
  
BY THE LORD McINTOSH OF HARINGEY
 
171     Page 169, line 23, after ("If") insert ("the Authority decides to refuse") 
172     Page 169, line 23, leave out ("is refused") 
  
Clause 320
 
  
BY THE LORD McINTOSH OF HARINGEY
 
172A     Page 170, line 18, after ("may") insert (", as a result of this Part,") 
  
Clause 322
 
  
BY THE LORD NEWBY
THE LORD SHARMAN
 
173     Page 171, line 27, leave out ("(7)") and insert ("(6)") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
173A     Page 171, line 37, after ("to") insert ("or retain with the consent of") 
  
BY THE LORD NEWBY
THE LORD SHARMAN
 
174     Page 171, line 42, leave out from beginning to ("one") in line 43 and insert ("The regulated activity is") 
  
BY THE LORD McINTOSH OF HARINGEY
 
174A     Page 171, line 44, at end insert ("; or
    (  )  one in relation to which he is an exempt person.")
 
  
BY THE LORD NEWBY
THE LORD SHARMAN
 
175     Page 172, line 4, leave out subsection (7) 
  
BY THE LORD McINTOSH OF HARINGEY
 
175A     Page 172, line 4, at end insert ("(other than regulated activities in relation to which he is an exempt person)") 
 
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