Clause 226
Banking Bill
3:00 pm
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
I beg to move amendment No. 9, in clause 226, page 106, line 39, after ‘person’, insert
‘, in connection with the exercise of functions by any person under the Banking Act 2008,’.
The clause is the first of three clauses relating to the powers of the FSA. It affects the powers that the FSA can use under section 45(1)(c) of the Financial Services and Markets Act 2000. Under that Act the FSA can use powers on its own initiative to vary the permission relating to the regulated activities that an authorised person may have permission to undertake. The own initiative variation of permission—often known as OIVOP—gives the FSA the power to restrict what an authorised person can do.
My concern is that the power in the clause seems rather broad. I assume that the power can be used only in the context of decisions or actions taken under the Bill, but the clause is not written in that way. It is not as narrowly defined as that. Can the Minister reassure the Committee that the OIVOP power will be used by the FSA only when it relates to powers exercised under the Bill?