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Session 1999-2000
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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 (f) to the Second Marshalled List of Amendments to the Financial Services and Markets Bill to be moved in Committee in the House of Lords.

  
Clause 144
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 71, line 2, at end insert--
 
    ("(9A)  Before a revocation of a direction under subsection (9)(a) takes effect, the Authority must give the authorised person concerned notice in writing of the revocation at least seven days before it takes effect and such notice must set out the reasons for revoking the direction.
 
    (9B)  Subsection (9A) does not apply if the authorised person concerned has consented to the revocation or the Authority considers that it is desirable, in the interests of persons using, or likely to use, a service provided by the authorised person in carrying on a regulated activity for it to revoke the direction without delay.")
 
  
After Clause 152
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Insert the following new Clause-- 
       .--(1)  A person who is subject to control of information rules ("A") incurs no liability to a person ("B") for or with whom he does business in the course of carrying on any regulated activity--
    (a)  for failing to make information in his possession available to, or to use such information for the benefit of B; or
    (b)  for failing, by not availing himself of such information, to avoid a conflict of interest between himself and B or between B and another person with whom A does business in the course of carrying on any regulated activity,
if A shows that the failure is due to arrangements made by A which comply with the provisions of such rules.
 
    (2)  Where A lawfully carries on any activity in connection with A's regulated activity subsection (1) shall apply to A as if references in that subsection to a person with whom he does business in the course of carrying on a regulated activity were references to a person with whom he does business in the course of carrying on either of those activities.
 
    (3)  Subsection (1)--
    (a)  does not exonerate A if A has expressly agreed that all information in A's possession is to be made available or used by A for the benefit of B or that any such conflict of interest as is mentioned in subsection (1)(b) is to be avoided by A; and
    (b)  is without prejudice to any defence available apart from that subsection.
    (4)  References in subsection (1) to control of information rules include references to any other rules made for the purposes of the matters mentioned in section (Control of information) by rules made under this Part.
 
    (5)  The provisions of this section shall be deemed always to have had effect.")
Control of information rules.
  
Clause 153
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 74, line 33, at end insert--
 
    (4A)  Subsection (4)(c) shall not apply if the request is made by or on behalf of an authorised person or an approved person within the meaning of section 63(13)."
 
  
After Clause 154
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Insert the following new Clause-- 
 ("CHAPTER IIA 
 POLICIES RELATING TO TAKEOVER REGULATION 
     .--(1)  Subject to subsections (2) and (3), the code issued under section 116 may state that behaviour of a person which is in conformity with the City Code does not amount to market abuse.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in section 115(2)(a).
 
    (3)  A statement made under subsection (1) may include such conditions and limitations as the Authority considers appropriate, including conditions and limitations concerning the categories of behaviour and classes of person covered by the statement.
 
    (4)  If a person behaves in a way which fulfils the requirements of any statement included pursuant to subsection (1) in the code issued under section 116, that behaviour of his is to be taken, for the purposes of this Act, as not amounting to market abuse.")
Market abuse: behaviour conforming with City Code.
     Insert the following new Clause-- 
     ("  .--(1)  Subject to subsections (2) and (3), the Authority may adopt a policy that it will not exercise its powers under sections 119, 126, 375, 377 and 378 in respect of behaviour which is not in conformity with the City Code except following a request by the Panel that the Authority consider whether to exercise such powers.
 
    (2)  Subsection (1) does not apply in respect of behaviour which satisfies the condition in section 115(2)(a).
 
    (3)  A policy adopted under subsection (1) may include such conditions and limitations as the Authority considers appropriate, including conditions and limitations concerning the categories of behaviour and classes of person covered by the policy.
 
    (4)  Where the Authority has adopted a policy under subsection (1), such policy shall be recorded in a statement issued under this section; and the provisions of section 120(7) to (9) shall apply to a statement issued under this section.
 
    (5)  The Authority shall not exercise its powers under sections 119, 126, 375, 377 and 378 in a manner which is not in accordance with any statement of policy issued under this section.
 
    (6)  The provisions of this Act which refer to the Panel or to the City Code shall not be construed as imposing any statutory duty on the Panel and no such duty shall be imposed on the Panel by reason of any thing done or not done by the Authority or the Panel under or in connection with such provisions.
 
    (7)  Neither the Panel nor any person who is, or is acting as, a member, officer, member of staff or agent of the Panel is to be liable in damages for anything done or omitted which is or may be connected in any way with the exercise or purported exercise of any duty, power or function of the Authority under this Act unless the act or omission is shown to have been in bad faith.
 
    (8)  In this Part--
    behaviour of a person which is in conformity with the City Code" means behaviour of a person which in the opinion of the Panel conforms with the responsibilities imposed on that person by the City Code;
    behaviour which is not in conformity with the City Code" means behaviour of a person which in the opinion of the Panel does not conform with the responsibilities imposed on that person by the City Code;
    the opinion of the Panel" includes any revised opinion formed by the Panel as a result of any further consideration;
    City Code" means the City Code on Takeovers and Mergers issued by the Panel as applied by the Panel and as amended from time to time by the Panel;
    the Panel" means the Panel on Takeover and Mergers.")
Market abuse: statements of policy relating to City Code.
  
Clause 206
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 106, line 32, at end insert-- ("and
(c) the circumstances in which the Authority will take disciplinary measures under this Part.")
 
     Page 106, line 33, after ("determining") insert ("whether to take disciplinary action, and if so,") 
  
Clause 226
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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.")
 
  
Clause 248
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 130, line 9, leave out from ("notice") to end of line 10 and insert--
    ("(a)  to the manager if notice of the proposal was given under section 247(1) and, unless the Authority considers that there are good reasons not to do so, to the trustee; and
    (b)  to the trustee if the notice of the proposal was given under section 247(3) and, unless the Authority considers that there are good reasons not to do so, to the manager.")
 
  
Clause 255
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 133, line 26, after ("such") insert ("reasonable") 
  
Clause 282
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 149, line 11, at end insert--
 
    ("(6)  Regulations made under subsection (1) must provide as recognition requirements--
    (a)  a requirement that the investment exchange or clearing house must establish and maintain arrangements for the investigation by a person independent of the investment exchange or clearing house of complaints arising in connection with the activities of the investment exchange or clearing house;
    (b)  a requirement that the arrangements established by the investment exchange or clearing house for the taking of disciplinary measures in relation to its members comply with the requirements of the European Convention on Human Rights; and
    (c)  a requirement that the investment exchange or clearing house is subject to restrictions on the disclosure of confidential information obtained from other persons equivalent to the restrictions which apply to the Authority under this Act.")
 
  
Clause 315
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 167, line 20, at end insert ("; and
    (c)  an explanation of the Authority's reasons for making the proposed direction.")
 
     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 322
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 171, line 37, after ("to") insert ("or retain with the consent of") 
  
After Clause 328
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     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 389
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 207, line 35, at end insert ("save that this shall not prevent the Authority from providing A with a summary of the principal characteristics of those other cases without disclosing those other persons' identities") 
  
Clause 390
 
  
BY THE LORD SAATCHI
THE LORD KINGSLAND
 
     Page 209, line 5, after ("giving") insert ("a supervisory notice or") 
 
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Prepared 5 May 2000