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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 (e) 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 135
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 66, line 9, after ("trustee,") insert ("for the purposes of subsection (7)") 
  
Clause 144
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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") 
     Page 70, line 19, after ("not") insert ("or would be unlikely to") 
     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.")
 
     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.")
 
  
Clause 147
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 71, line 39, leave out ("made by the Authority") 
  
Clause 151
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 73, line 2, at end insert ("together with an explanation of the methodology employed in carrying out the analysis") 
     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") 
     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
 
     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.")
 
  
Clause 153
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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.")
 
  
Clause 161
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 80, line 14, leave out ("without delay") and insert ("before the end of such reasonable period as may be specified") 
  
Clause 164
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 82, line 14, leave out ("the Authority") and insert ("an investigating authority") 
     Page 82, line 16, leave out paragraph (a) 
     Page 82, line 21, leave out paragraphs (d) and (e) 
     Page 82, line 24, leave out paragraphs (f) to (l) 
     Page 82, line 39, leave out ("the Authority") and insert ("an investigating authority") 
     Page 83, line 2, leave out ("Authority") and insert ("investigating authority") 
     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
 
     Page 83, line 22, leave out ("a person") and insert ("one or more competent persons") 
     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
 
     Page 84, line 25, leave out ("the Authority") and insert ("an investigating authority") 
     Page 84, line 26, after (" 164(3)") insert ("or (5)") 
     Page 84, line 28, leave out paragraph (b) 
     Page 84, line 35, after (" 164(1)") insert ("or (4)") 
     Page 84, line 39, leave out from ("(2)") to second ("of") in line 40 
  
Clause 168
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     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
 
     Page 86, line 35, leave out ("or (4)") 
     Page 86, line 36, leave out ("(so far as relating to") and insert ("(as a result of") 
  
Clause 170
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 87, line 15, leave out ("(4)") and insert ("(5)") 
  
Clause 171
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 88, line 10, leave out ("(4)") and insert ("(5)") 
  
Clause 172
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 89, line 31, leave out ("(4)") and insert ("(5)") 
  
Clause 174
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 90, leave out lines 27 and 28 and insert ("A person may not acquire") 
     Page 90, leave out line 33 and insert ("unless he has first notified the Authority") 
     Page 90, line 34, leave out ("step") and insert ("action") 
  
Clause 175
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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
 
     Page 97, leave out lines 6 and 7 and insert--
 
    ("A controller of a UK authorised person may not")
 
     Page 97, line 8, leave out ("ceasing") and insert ("cease") 
     Page 97, line 10, leave out ("reducing") and insert ("reduce") 
     Page 97, leave out line 11 and insert ("unless he has first notified the Authority") 
     Page 97, line 13, leave out ("step") and insert ("action") 
  
Clause 187
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 97, line 33, leave out ("carries out the proposal") and insert ("acquires the control") 
  
Clause 206
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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
 
     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.
 
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Prepared 4 May 2000