Financial Services Bill — Clause 6 — Financial Services Authority Regulation of Setting Benchmarks for Commodity Prices — 10 Dec 2012 at 21:30

The majority of MPs voted against including the setting of benchmarks for determining the price at which commodities may be bought and sold among the activities subject to regulation by the Financial Services Authority.

MPs were considering the Financial Services Bill^[1]. The amendment rejected in this vote was:

• Amendment (a) proposed to Lords amendment 60

Lords amendment 60^[2][3] stated:

• Page 38, line 30, after “(1A),” insert—
• “( ) after subsection (5) insert—
• “(6) “Benchmark” means an index, rate or price that—
• (a) is determined from time to time by reference to the state of the market,
• (b) is made available to the public (whether free of charge or on payment), and
• (c) is used for reference for purposes that include one or more of the following—
• (i) determining the interest payable, or other sums due, under loan agreements or under other contracts relating to investments;
• (ii) determining the price at which investments may be bought or sold or the value of investments;
• (iii) measuring the performance of investments.

amendment (a)^[4] which was the amendment to the Lords amendment rejected in this vote stated:

• Line 12, after ‘investments’, insert ‘or commodities’.

The Lords amendment sought to extend clause 6 of the Bill^[5] titled Extension of scope of regulation which provided for amendments to Section 22 of the Financial Services and Markets Act 2000 which, via schedule 2 of that act defines the activities regulated by the Financial Services Authority. The amendments extended the scope of activities regulated by the Financial Services Authority.

The amendment provides a definition for the term "benchmark" which was introduced by Lords amendment 59^[2][3] which stated:

• Page 38, line 29, at end insert “, or
• (b) the setting of a specified benchmark.”

The Lords amendment would have taken effect on Clause 6^[5] of the Bill titled Extension of scope of regulation which provided for an extending the powers of the Financial Services Authority to include the regulation unsecured loans and contracts for hire of goods. Via Lords Amendment 59^[3] the powers of the Authority were also extended to cover the setting of benchmarks; the definition of such benchmarks was the subject of Amendment 60 quoted above.

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• [1] Parliament's webpage on the Financial Services Bill
• [2] Lords Amendments to the Financial Services Bill
• [3] Page of Lords Amendments to the Financial Services Bill containing amendments 59 and 60
• [4] Amendment paper for consideration of the Lords amendments to the Financial Services Bill on 10 December 2012
• [5] Clause 6 of the Financial Services Bill to which the amendments relate

Debate in Parliament | Source |