New Clause 5 - Proceedings under Financial Servicesand Markets Act 2000
Social Security Contributions
12:30 pm
Mr Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
I believe that the hon. Gentleman's fears are wholly unfounded. As he said himself, any number of considerations could underlie the decision whether to take the route that is offered by the Bill. He, or any other person, would be ill-advised to conclude that directors will take that decision for one specific reason over any one of the range that might apply. Because they can consider such a wide range of factors, there is no danger along the lines that the hon. Gentleman described. As the business community well knows, early settlement cannot in itself be seen as an indication of directors' expectations regarding the performance of the company's share price.
However—this is a little like our discussion about the Human Rights Act 1998—let us suppose that the hon. Gentleman is right and that the Bill allows for a breach of the market abuse rules. In such circumstances, the Financial Services Authority would rightly wish to take action. I would therefore argue against the opt-out in the new clause.
The new clause is unnecessary, and could damage the authority's ability to carry out its proper regulatory functions. I hope that the hon. Gentleman will withdraw the motion.