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

  


COMMONS AMENDMENT IN LIEU OF A LORDS
AMENDMENT TO WHICH THE COMMONS HAVE
DISAGREED AND A COMMONS AMENDMENT
TO A LORDS AMENDMENT

 

[The page and line refer to HL Bill 32 as first printed for the Lords.]

Amendment
No.
 
  
After Clause 149
 
  
LORDS AMENDMENT No. 180
 
180     Insert the following new Clause-- 
 ("CHAPTER IIA 
 POLICIES RELATING TO TAKEOVER REGULATIOn 
     .--(1)  Subject to subsections (2) and (3), the Authority is authorised to include in the code issued under section 110 a statement 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 109(2)(a).
 
    (3)  A statement made under subsection (1) may include such conditions and limitations as the Authority considers appropriate, including conditions and limitations specifying the behaviour and the persons covered by the statement.
 
    (4)  The Authority may at any time alter or replace any statement made under subsection (1).
 
    (5)  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 110, that behaviour of his is to be taken, for the purposes of this Act, as not amounting to market abuse.
 
    (6)  In this section--
    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;
    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 Takeovers and Mergers.")
Market abuse: behaviour conforming with City Code.
     The Commons disagree to this Amendment but propose the following amendment in lieu thereof-- 
  
After Clause 110
 
180A     Insert the following new Clause-- 
     ("  .--(1)  The Authority may include in the code issued by it under section 110 ("the Authority's code") provision to the effect that in its opinion behaviour conforming with the City Code--
    (a)  does not amount to market abuse;
    (b)  does not amount to market abuse in specified circumstances; or
    (c)  does not amount to market abuse if engaged in by a specified description of person.
    (2)  But the Treasury's approval is required before any such provision may be included in the Authority's code.
 
    (3)  If the Authority's code includes provision of a kind authorised by subsection (1), the Authority must keep itself informed of the way in which the Panel on Takeovers and Mergers interprets and administers the relevant provisions of the City Code.
 
    (4)  City Code" means the City Code on Takeovers and Mergers issued by the Panel as it has effect at the time when the behaviour occurs.
 
    (5)  Specified" means specified in the Authority's code.")
Provisions included in the Authority's Code by reference to the City Code.
  
Schedule 1
 
  
LORDS AMENDMENT No. 589
 
589     Page 219, line 8, leave out sub-paragraph (4) and insert-- 
 ("(4)  In a case where the investigator-- 
 
    (a)  has reported that a complaint is well-founded, or
    (b)  has criticised the Authority in his report,
 
     the investigator may include in his report a recommendation to the Authority that it takes steps to remedy the matter complained of including, if appropriate, by making an ex-gratia payment.") 
     The Commons agree to this Amendment with the following amendment-- 
589A     Line 2, leave out from ("(4)") to end of line 7 and insert ("If the investigator considers that a complaint of which he has been notified under sub-paragraph (3) ought to be investigated, he may proceed as if the complaint had been referred to him under the complaints scheme.
 
    (4A)  The complaints scheme must confer on the investigator the power to recommend, if he thinks it appropriate, that the Authority--
    (a)  makes a compensatory payment to the complainant,
    (b)  remedies the matter complained of,
or takes both of those steps.")
 
 
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