Financial Services and Markets Bill — Determination of applications — 5 Jun 2000

Lords amendments considered.

Lords amendment: No. 1, in page 2, line 18, leave out ("any exercise of its general functions") and insert ("anything done in the discharge of those functions").

I beg to move, That this House agrees with the Lords in the said amendment.

Madam Speaker:

With this we may discuss Lords amendments Nos. 7 and 82.

Lords amendment agreed to.

Lords amendment: No. 2, in page 3, line 16, leave out from ("persons") to end of line 21 and insert ("--

(a) who are consumers for the purposes of section 129; or

(b) who, in relation to regulated activities carried on otherwise than by authorised persons, would be consumers for those purposes if the activities were carried on by authorised persons.")

I beg to move, That this House agrees with the Lords in the said amendment.

Mr. Deputy Speaker (Sir Alan Haselhurst):

With this we may discuss Lords amendments Nos. 4, 5, 8, 51, 52, 154, 156, 237, 238, 240, 410 to 415 and 605.

The Bill advances different definitions of consumer, but it would be much simpler if it contained the same definition throughout. I can imagine muddle developing in the future as a result of the different definitions.

we shall consider whether it is possible to have a more consistent definition throughout the Bill. That might be helpful.--[ Official Report, Standing Committee A , 15 July 1999; c.205-06.]

Lords amendment agreed to.

Lords amendment: No. 3, after clause 6, to insert the following new clause-- Duty of Authority to follow principles of good governance--

(". In managing its affairs, the Authority must have regard to such generally accepted principles of good corporate governance as it is reasonable to regard as applicable to it.")

Motion made, and Question proposed, That this House agrees with the Lords in the said amendment.--[ Miss Melanie Johnson. ]

I beg to move an amendment to the Lords amendment, in line 2, leave out from 'to' to end of the Lords Amendment and insert

'all relevant generally accepted principles of good corporate governance and in discharging its functions the Authority must act in a way which is fair, reasonable, open and proportionate'.

in the longer term we recommend that the posts of Chief Executive and Chairman should be separated and that a non-executive Chairman should be appointed. We see advantages in this of limiting the power of and focus on a single individual; enhancing the power of non-executive directors; and ensuring that control of the agenda does not lie exclusively with the executive.

might include those contained in the Combined Code of the Committee on Corporate Governance.

fair, reasonable, open and proportionate.

fair, reasonable, open and proportionate

as it is reasonable to regard as applicable to it

fair, reasonable, open and proportionate?

fair, reasonable, open and proportionate

There should be a clear division of responsibilities at the head of the company which will ensure a balance of power and authority, such that no one individual has unfettered powers of decision.

ensure a balance of power and authority, such that no one individual has unfettered powers of decision.

A decision to combine the posts of Chairman and Chief Executive Officer in one person should be publicly justified. Whether the posts are held by different people or by the same person, there should be a strong and independent non-Executive element on the Board, with a recognised senior member other than the Chairman to whom concerns can be conveyed.

The Chairman, Chief Executive and Senior Independent Director should be identified in the Annual Report.

Amendment negatived.

Lords amendment agreed to.

Lords amendments Nos. 4 and 5 agreed to.

Lords amendment: No. 6, after clause 9, to insert the following new clause-- Duty to consider representations by the Panels --

(".--(1) This section applies to a representation made, in accordance with arrangements made under section 7, by the Practitioner Panel or by the Consumer Panel.

(2) The Authority must consider the representation.

(3) If the Authority disagrees with a view expressed, or proposal made, in the representation, it must give the Panel a statement in writing of its reasons for disagreeing.")

Motion made, and Question proposed , That this House agrees with the Lords in the said amendment.--[ Miss Melanie Johnson .]

I beg to move an amendment to the Lords amendment, in line 8, at end insert--

'(4) The Authority's statement must be published in such manner as the Authority considers appropriate.'.

Amendment negatived.

Lords amendment agreed to.

Lords amendments Nos. 7 and 8 agreed to.

Lords amendment: No. 9, in page 7, line 8, leave out subsection (4).

I beg to move, That this House agrees with the Lords in the said amendment.

Mr. Deputy Speaker:

With this we may discuss Lords amendments Nos. 189, 211 to 227, 229 to 233, 265, 266, 269, 314 to 325, 374, 551, 565 and 652.

Lords amendment agreed to.

Lords amendment: No. 10, in page 8, line 19, leave out subsection (2) and insert--

("(2) The contravention does not--

(a) make a person guilty of an offence;

(b) make any transaction void or unenforceable; or

(c) (subject to subsection (3)) give rise to any right of action for breach of statutory duty.

(3) In prescribed cases the contravention is actionable at the suit of a person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.")

I beg to move, That this House agrees with the Lords in the said amendment.

In the light of points made in this House, particularly by the right hon. and learned Member for North-East Bedfordshire (Sir N. Lyell), and in the other place, the Government have reconsidered the different provisions in the Bill dealing with rights of action and enforcement of agreements.

Lords amendment agreed to.

Lords amendment : No. 11 in , page 8, line 38, at end insert--

("(5A) An order under subsection (5) may, in particular, provide that subsection (1) does not apply in relation to communications--

(a) of a specified description;

(b) originating in a specified country or territory outside the United Kingdom;

(c) originating in a country or territory which falls within a specified description of country or territory outside the United Kingdom; or

(d) originating outside the United Kingdom.

(5B) The Treasury may by order repeal subsection (3).")

I beg to move, That this House agrees with the Lords in the said amendment.

Mr. Deputy Speaker:

With this we may discuss Lords amendments Nos. 12 to 18, 172 to 174, 272 and 296.

Lords amendment agreed to.

Lords amendments Nos. 12 to 18 agreed to.

Lords amendment: No. 19, in page 10, line 34, leave out ("("the purchaser")")

I beg to move, That this House agrees with the Lords in the said amendment.

Mr. Deputy Speaker:

With this we may discuss Lords amendments Nos. 20 to 24, 30 to 32, 34, 46 to 48, 53 to 56, 88, 98, 100, 106, 110, 113 to 119, 121, 122, 160 to 167, 190, 191, 260 to 264, 349, 375, 397, 405, 433, 435, 444, 446 to 456, 462 to 484, 536 to 539, 555, 560, 563, 564, 616, 617, 632, 637 to 649, 661, 663, 664 and 672.

Lords amendment agreed to.

Lords amendments Nos. 20 to 56 agreed to.

Lords amendment : No. 57, in page 22, line 28, after ("may") insert ("reasonably").

I beg to move, That this House agrees with the Lords in the said amendment.

Mr. Deputy Speaker:

With this we may discuss Lords amendments Nos. 58, 74, 187, 188, 234, 235, 273, 304, 335, 372, 373, 430.

Lords amendment agreed to .

Lords amendment. No. 58 agreed to.

Lords amendment: No. 59, in page 23, line 3, leave out subsection (4) and insert--

("(4) If the Authority grants an application for, or for variation of, a Part IV permission, it must give the applicant written notice.

(5) The notice must state the date from which the permission, or the variation, has effect.

(6) If the Authority proposes--

(a) to give a Part IV permission but to exercise its power under section 40(6)(a) or (b) or 41(1), or

(b) to vary a Part IV permission on the application of an authorised person but to exercise its power under any of those provisions (as a result of section 42(5)),

it must give the applicant a warning notice.

(7) If the Authority proposes to refuse an application made under this Part, it must (unless subsection (8) applies) give the applicant a warning notice.

(8) This subsection applies if it appears to the Authority that--

(a) the applicant is an EEA firm; and

(b) the application is made with a view to carrying on a regulated activity in a manner in which the applicant is, or would be, entitled to carry on that activity in the exercise of an EEA right whether through a United Kingdom branch or by providing services in the United Kingdom.

(9) If the Authority decides--

(a) to give a Part IV permission but to exercise its power under section 40(6)(a) or (b) or 41(1),

(b) to vary a Part IV permission on the application of an authorised person but to exercise its power under any of those provisions (as a result of section 42(5)), or

(c) to refuse an application under this Part,

it must give the applicant a decision notice.")

Motion made, and Question proposed, That this House agrees with the Lords in the said amendment.-- [ Mr. Timms. ]

has been intercepted in obedience to a warrant issued under any enactment relating to the interception of communications

would not be in the public interest

or would not be deemed to be fair in the FSA's eyes because of a potential prejudice to someone else's commercial interests.

Question put, That the amendment to the Lords amendment be made:--

The House divided: Ayes 141, Noes 250.

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