Clause 33 - Making, varying or discharging customer information orders
Crime (International Co-operation) Bill [Lords]
9:45 am
Mr Nick Hawkins (Surrey Heath, Conservative)
The amendments in this group run together. Amendment No. 96 to clause 38 effectively makes the same amendment for Scotland.
Clause 33(3)(a) is too wide. We should never have a situation in which absolutely every financial institution can be included under the draconian measures of the clause. Amendment No. 91 would introduce a time limit, which would be a useful protection.
We can see the logic of stating in subsection (3)(b) that the application may specify a particular description or descriptions of financial institutions, and that, in subsection 3(c), a particular financial institution or institutions may be specified. However, to state that an application may specify all financial institution reinforces the point on which my hon. Friend the Member for Leominster was helpfully supporting me earlier. We are talking about onerous burdens in terms of the amount of work that will be created. Surely, it must be possible, when an application is being made, that those applying should be able to specify at the very least either a particular group or a description of financial institutions. The clause should not apply to the entire financial sector, as that is too wide.
The phrase ''financial institution'' is defined widely for the purposes of the Bill. We know that there has been huge expansion in recent years because of the success of the City of London and banking in the UK; we are one of the world's great financial centres. However, it is far too wide to allow an application to be made, albeit on worthy grounds, without the other side being heard by a judge in chambers—in other words, ex parte—which states that every financial institution in the whole of the UK must provide particular information. Although the amendment is small, it reflects a matter of concern.
I know from the people with whom I worked when I was group legal adviser for a large financial institution—I used to have meetings with those on the legal committee of the British Bankers Association—that this kind of all-embracing legislation causes problems. I hope that we will have the opportunity to cut down the breadth of the application and put the onus on those who are applying for the order. They should be able to specify either a financial institution or a group, and not the whole financial sector.