Financial Services (Banking Reform) Bill — Report (1st Day) — 26 Nov 2013 at 17:53
Tabled by Lord Lawson of Blaby
4: Clause 4, page 17, line 15, at end insert-
“142VA Review of operation of legislation relating to ring-fencing
(1) The Treasury must, before the end of the initial period, appoint a panel of at least 5 persons (the review panel) to carry out a review of the operation of the legislation relating to ring-fencing.
(2) The legislation relating to ring-fencing means-
(a) Part 9B of FSMA 2000 (as inserted by section 4);
(b) orders and regulations made by the Treasury under that Part;
(c) ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;
(d) section 192JA of FSMA 2000 (as inserted by section 116);
(e) rules made by the FCA or the PRA under that section.
(3) The initial period is the period of 4 years beginning with the first day on which section 142G of FSMA 2000 is fully in force.
(4) The members of the review panel must be persons-
(a) who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and
(b) who do not appear to the Treasury to have any financial or other interests that could reasonably be regarded as affecting their suitability to serve as members of the review panel.
(5) In appointing the members of the review panel, the Treasury-
(a) must have regard to the need to ensure that the review panel (considered as a whole) has the necessary experience to undertake the review,
(b) must ensure that at least one of the members is a person appearing to the Treasury to have substantial experience in central banking or banking regulation at a senior level, and
(c) must obtain the consent of the chairman of the Economic Affairs Committee of the House of Lords and the chairman of the Treasury Committee of the House of Commons.
(6) The Treasury must appoint one of the members of the review panel to be chair of the panel.
(7) The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury-
(a) setting out the results of the review,
(b) making such recommendations (if any) as the panel considers appropriate.
(8) The report must in particular include-
(a) an assessment of the extent to which the operation of the legislation relating to ring-fencing is facilitating the advancement by the PRA of the objective in section 2B(3)(c) and by the FCA of the continuity objective, and
(b) any recommendations which the panel considers appropriate for the making of further changes in the law with a view to better facilitating the advancement of those objectives; provided that such recommendations are consistent with the continued protection of core activities as defined in section 142B of FSMA 2000.
(9) The Treasury must-
(a) lay a copy of the report before Parliament, and
(b) publish the report in such manner as they think fit.
(10) Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.”
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