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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 Supplement (b) to the Second Marshalled List of Amendments to the Financial Services and Markets Bill to be moved on Report in the House of Lords.

  
Clause 157
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 77, line 13, leave out ("punish") and insert ("deal with") 
     Page 77, line 14, leave out ("had been guilty of contempt of court") and insert ("were in contempt") 
  
Clause 286
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 150, line 39, leave out ("299") and insert ("(Recognition orders: role of the Treasury)") 
     Page 151, line 3, leave out ("299") and insert ("(Recognition orders: role of the Treasury)") 
  
Clause 289
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 152, line 40, leave out subsection (8) 
  
Clause 295
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 156, line 7, leave out subsection (11) 
  
Clause 298
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 157, line 23, at end insert--
    (""practices" means--
          (a)  in relation to a recognised investment exchange, the practices of the exchange in its capacity as such; and
          (b)  in relation to a recognised clearing house, the practices of the clearing house in respect of its clearing arrangements;")
 
     Page 157, line 29, leave out ("particulars described") and insert ("criteria mentioned") 
     Page 157, line 31, leave out ("particulars described") and insert ("criteria mentioned") 
     Page 157, line 32, leave out from beginning to end of line 41 
     Page 157, line 42, leave out from ("Chapter") to end of line 45 and insert ("regulatory provisions or practices have a significantly adverse effect on competition if--
    (a)  they have, or are intended or likely to have, that effect; or
    (b)  the effect that they have, or are intended or likely to have, is to require or encourage behaviour which has, or is intended or likely to have, a significantly adverse effect on competition.
    (  )  If regulatory provisions or practices have, or are intended or likely to have, the effect of requiring or encouraging exploitation of the strength of a market position they are to be taken, for the purposes of this Chapter, to have an adverse effect on competition.")
 
     Page 158, line 1, leave out subsection (3) 
     Page 158, line 8, leave out ("guidance has, or is") and insert ("regulatory provisions have, or are intended or") 
     Page 158, line 9, leave out ("it is") and insert ("the provisions concerned are") 
     Page 158, line 10, leave out ("it") and insert ("them") 
  
Clause 299
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Leave out Clause 299 
  
Clause 300
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Leave out Clause 300 
  
Clause 301
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 159, line 13, leave out from ("284") to ("in") in line 14 and insert--
 
    ("(  )  The Authority must send to the Director such information in its possession as a result of the application for recognition as it considers will assist him in discharging his functions")
 
     Page 159, line 16, leave out from ("must") to end of line 24 and insert ("issue a report as to whether--
    (a)  a regulatory provision of which a copy has been sent to him under subsection (1) has a significantly adverse effect on competition, or
    (b)  a combination of regulatory provisions so copied to him have such an effect.")
 
     Page 159, line 26, leave out from beginning to end of line 34 and insert ("significantly adverse effect on competition,") 
     Page 159, line 35, at end insert--
 
    ("(  )  When the Director issues a report under subsection (2), he must send a copy of it to the Authority, the Competition Commission and the Treasury.")
 
  
After Clause 301
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     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
 
     Leave out Clause 302 
  
Clause 303
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Leave out Clause 303 
  
Clause 304
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 160, line 40, leave out ("302") and insert ("(Further reports by Director General of Fair Trading)") 
     Page 161, line 3, leave out from ("control") to end of line 4 
     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.")
 
     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
 
     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.
     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 the 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.
     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.
     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.
 
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Prepared 20 April 2000