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

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Clause 327
 
  
BY THE LORD McINTOSH OF HARINGEY
 
175B     Page 175, line 18, leave out ("of regulated activities by those members") and insert ("by those members of regulated activities (other than regulated activities in relation to which they are exempt persons)") 
  
After Clause 328
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
175C     Insert the following new Clause-- 
     (". Notwithstanding the other provisions of this Part, activities will not constitute regulated activities if they consist of--
    (a)  negotiating the terms on which another person buys, sells, subscribes for or underwrites a particular investment or carries on any other regulated activity in relation to a particular investment;
    (b)  drafting or preparing all or part of the agreement for or other documentation in respect of such purchase, sale, subscription or underwriting, or other regulated activity, or making similar administrative arrangements therefor; or
    (c)  advising on the legal or commercial implications (or both) of the terms and conditions of any such transaction or of any investment.")
Application of this Part to certain professional services.
  
Clause 329
 
  
BY THE LORD McINTOSH OF HARINGEY
 
176     Page 176, line 14, at end insert--
 
    ("(4)  Part IA of Schedule 18--
    (a)  removes certain restrictions on the ability of incorporated friendly societies to form subsidiaries and control corporate bodies; and
    (b)  makes connected amendments.")
 
  
Schedule 18
 
  
BY THE LORD McINTOSH OF HARINGEY
 
177     Page 277, line 39, at end insert-- 
 ("PART IA 
 FRIENDLY SOCIETIES: SUBSIDIARIES AND CONTROLLED BODIES 
 Interpretation 
     .  In this Part of this Schedule-- 
 
    the 1992 Act" means the Friendly Societies Act 1992; and
    section 13" means section 13 of that Act.
1992 c. 40.
 Qualifying bodies 
     .--(1)  Subsections (2) to (5) of section 13 (incorporated friendly societies allowed to form or acquire control or joint control only of qualifying bodies) cease to have effect.
 
    (2)  As a result, omit--
    (a)  subsections (8) and (11) of that section, and
    (b)  Schedule 7 to the 1992 Act (activities which may be carried on by a subsidiary of, or body jointly controlled by, an incorporated friendly society).
 
 Bodies controlled by societies 
     .  In section 13(9) (defined terms), after paragraph (a) insert--
      (aa)  an incorporated friendly society also has control of a body corporate if the body corporate is itself a body controlled in one of the ways mentioned in paragraph (a)(i), (ii) or (iii) by a body corporate of which the society has control;".
 
 Joint control by societies 
     .  In section 13(9), after paragraph (c) insert--
      (cc)  an incorporated friendly society also has joint control of a body corporate if--
            (i)  a subsidiary of the society has joint control of the body corporate in a way mentioned in paragraph (c)(i), (ii) or (iii);
            (ii)  a body corporate of which the society has joint control has joint control of the body corporate in such a way; or
            (iii)  the body corporate is controlled in a way mentioned in paragraph (a)(i), (ii) or (iii) by a body corporate of which the society has joint control;".
 
 Acquisition of joint control 
     .  In section 13(9), in the words following paragraph (d), after "paragraph (c)" insert "or (cc)". 
 Amendment of Schedule 8 to the 1992 Act 
     .--(1)  Schedule 8 to the 1992 Act (provisions supplementing section 13) is amended as follows.
 
    (2)  Omit paragraph 3(2).
 
    (3)  After paragraph 3 insert--
        3A.--(1)  A body is to be treated for the purposes of section 13(9) as having the right to appoint to a directorship if--
      (a)  a person's appointment to the directorship follows necessarily from his appointment as an officer of that body; or
      (b)  the directorship is held by the body itself.
        (2)  A body ("B") and some other person ("P") together are to be treated, for the purposes of section 13(9), as having the right to appoint to a directorship if--
      (a)  P is a body corporate which has directors and a person's appointment to the directorship follows necessarily from his appointment both as an officer of B and a director of P;
      (b)  P is a body corporate which does not have directors and a person's appointment to the directorship follows necessarily from his appointment both as an officer of B and as a member of P's managing body; or
      (c)  the directorship is held jointly by B and P.
        (3)  For the purposes of section 13(9), a right to appoint (or remove) which is exercisable only with the consent or agreement of another person must be left out of account unless no other person has a right to appoint (or remove) in relation to that directorship.
        (4)  Nothing in this paragraph is to be read as restricting the effect of section 13(9)."
    (4)  In paragraph 9 (exercise of certain rights under instruction by, or in the interests of, incorporated friendly society) insert at the end "or in the interests of any body over which the society has joint control".
 
 Consequential amendments 
     .--(1)  Section 52 of the 1992 Act is amended as follows.
 
    (2)  In subsection (2), omit paragraph (d).
 
    (3)  In subsection (3), for "(4) below" substitute "(2)".
 
    (4)  For subsection (4) substitute--
        (4)  A court may not make an order under subsection (5) unless it is satisfied that one or more of the conditions mentioned in subsection (2) are satisfied.
    (5)  In subsection (5), omit the words from "or, where" to the end.
 
 References in other enactments 
     .  References in any provision of, or made under, any enactment to subsidiaries of, or bodies jointly controlled by, an incorporated friendly society are to be read as including references to bodies which are such subsidiaries or bodies as a result of any provision of this Part of this Schedule.") 
  
Clause 342
 
  
BY THE LORD McINTOSH OF HARINGEY
 
177A     Page 181, line 37, after ("relates;") insert--
    ("(  )  approved person;")
 
177B     Page 182, line 23, at end insert--
    ("(g)  in the case of a person who is an approved person--
          (i)  his name;
          (ii)  the name of the relevant authorised person;
          (iii)  if the approved person is performing a controlled function under an arrangement with a contractor of the relevant authorised person, the name of the contractor.")
 
177C     Page 183, line 3, at end insert--
 
    ("(8)  Approved person" means a person in relation to whom the Authority has given its approval under section 58 and "controlled function" and "arrangement" have the same meaning as in that section.
 
    (9)  Relevant authorised person" has the meaning given in section 65.")
 
  
Clause 343
 
  
BY THE LORD McINTOSH OF HARINGEY
 
178     Page 183, line 16, leave out from beginning to ("and") and insert ("any provision made by or under this Act;") 
  
Clause 344
 
  
BY THE LORD McINTOSH OF HARINGEY
 
179     Page 184, line 6, after ("is") insert ("--
    (a)  made for the purpose of facilitating the carrying out of a public function; and
    (b)")  
 
180     Page 184, line 13, after ("prescribed") insert ("public") 
181     Page 184, line 17, after ("prescribed") insert ("public") 
182     Page 184, line 23, leave out sub-paragraphs (ii) and (iii) 
183     Page 184, line 35, at end insert--
 
    ("(5)  Public functions" includes--
    (a)  functions conferred by or in accordance with any provision contained in any enactment or subordinate legislation;
    (b)  functions conferred by or in accordance with any provision contained in the Community Treaties or any Community instrument;
    (c)  similar functions conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;
    (d)  functions exercisable in relation to prescribed disciplinary proceedings.
    (6)  Enactment" includes--
          (a)  an Act of the Scottish Parliament;
          (b)  Northern Ireland legislation.
 
     (7)  Subordinate legislation" has the meaning given in the Interpretation Act 1978 and also includes an instrument made under an Act of the Scottish Parliament or under Northern Ireland legislation.")1978 c. 30.
  
After Clause 345
 
  
BY THE LORD McINTOSH OF HARINGEY
 
183VA     Insert the following new Clause-- 
     (".--(1) A person is guilty of an offence if he has competition information (whether or not it was obtained by him) and improperly discloses it--
    (a)  if it relates to the affairs of an individual, during that individual's lifetime;
    (b)  if it relates to any particular business of a body, while that business continues to be carried on.
    (2)  For the purposes of subsection (1) a disclosure is improper unless it is made--
    (a)  with the consent of the person from whom it was obtained and, if different--
          (i)  the individual to whose affairs the information relates, or
          (ii)  the person for the time being carrying on the business to which the information relates;
    (b)  to facilitate the performance by a person mentioned in the first column of the table set out in Part I of Schedule (Competition Information) of a function mentioned in the second column of that table;
    (c)  in pursuance of a Community obligation;
    (d)  for the purpose of criminal proceedings in any part of the United Kingdom;
    (e)  in connection with the investigation of any criminal offence triable in the United Kingdom or any part of the United Kingdom;
    (f)  with a view to the institution of, or otherwise for the purposes of, civil proceedings brought under or in connection with--
          (i)  a competition provision; or
          (ii)  a specified enactment.
    (3)  A person guilty of an offence under this section is liable--
    (a)  on summary conviction, to a fine not exceeding the statutory maximum;
    (b)  on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.
    (4)  Section 343 does not apply to competition information.
 
    (5)  Competition information" means information which--
    (a)  relates to the affairs of a particular individual or body;
    (b)  is not otherwise in the public domain; and
    (c)  was obtained under or by virtue of a competition provision.
    (6)  Competition provision" means any provision of--
    (a)  an order made under section (Competition scrutiny);
    (b)  Chapter III of Part X; or
    (c)  Chapter II of Part XVIII.
    (7)  Specified enactment" means an enactment specified in Part II of Schedule (Competition Information).")
Competition information.
  
Clause 377
 
  
BY THE LORD McINTOSH OF HARINGEY
 
183WA     Page 200, line 39, leave out from ("person") to end of line 40 and insert ("("the person concerned")--
    (a)  has engaged in market abuse, or
    (b)  by taking or refraining from taking any action has required or encouraged another person or persons to engage in behaviour which, if engaged in by the person concerned, would amount to market abuse,
and the condition mentioned in subsection (1A) is fulfilled,
 
    (1A)  The condition is--")
 
183XA     Page 200, line 41, leave out ("him") and insert ("the person concerned") 
183YA     Page 200, line 43, at end insert--
 
    ("(  )  But the court may not make an order under subsection (2) if it is satisfied that--
    (a)  the person concerned believed, on reasonable grounds, that his behaviour did not fall within paragraph (a) or (b) of subsection (1); or
    (b)  he took all reasonable precautions and exercised all due diligence to avoid behaving in a way which fell within paragraph (a) or (b) of subsection (1).")
 
183ZA     Page 200, line 46, leave out ("(1)") and insert ("(1A)") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
183A     Page 201, line 5, at end insert--
    ("(d)  in a case within either of those paragraphs, to whether the Authority is prohibited from imposing a penalty on the person concerned by virtue of subsection (2) of section 119.")
 
  
BY THE LORD McINTOSH OF HARINGEY
 
183AA     Page 201, line 13, leave out ("paragraph (a) of that subsection") and insert ("subsection (1A)(a)") 
183AB     Page 201, line 15, leave out ("paragraph (b) of that subsection") and insert ("subsection (1A)(b)") 
183AC     Page 201, line 28, leave out ("(1)") and insert ("(1A)") 
  
Clause 378
 
  
BY THE LORD McINTOSH OF HARINGEY
 
183AD     Page 201, line 41, leave out ("and") and insert (", or
    (b)  by taking or refraining from taking any action has required or encouraged another person or persons to engage in behaviour which, if engaged in by the person concerned, would amount to market abuse,
and the condition mentioned in subsection (2A) is fulfilled,
 
    (2A)  The condition is--")
 
183AE     Page 201, line 42, leave out ("him") and insert ("the person concerned") 
183AF     Page 201, line 44, at end insert--
 
    ("(  )  But the Authority may not exercise that power as a result of subsection (2) 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)  the person concerned believed, on reasonable grounds, that his behaviour did not fall within paragraph (a) or (b) of that subsection; or
    (b)  he took all reasonable precautions and exercised all due diligence to avoid behaving in a way which fell within paragraph (a) or (b) of that subsection.")
 
183AG     Page 202, line 6, leave out ("(2)") and insert ("(2A)") 
183AH     Page 202, line 8, leave out ("(2)") and insert ("(2A)") 
183AJ     Page 202, line 10, leave out ("(2)") and insert ("(2A)") 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
183B     Page 202, line 12, at end insert--
    ("(d)  in a case within either paragraph (a) or (b) of subsection (2), to whether the Authority is prohibited from imposing a penalty on the person concerned by virtue of subsection (2) of section 119.")
 
  
BY THE LORD McINTOSH OF HARINGEY
 
183C     Page 202, line 16, leave out ("(2)") and insert ("(2A)") 
183D     Page 202, line 18, leave out ("(2)") and insert ("(2A)") 
 
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