'disclosure of Information

Orders of the Day — Financial Services Bill – in the House of Commons at 9:15 pm on 12 June 1986.

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1. In section 133(2)(a) of the Pair Trading Act 1973 after the words "the Telecommunications Act 1984" there shall be inserted the words "or Chapter XII of Part I of the Financial Services Act 1986".

2. In section 41(1)(a) of the Restrictive Trade Practices Act 1976 after the words "the Telecommunications Act 1984" there shall be inserted the worth "or Chapter XII of the Financial Services Act 1986".

3. At the end of section 19(3) of the Competition Act 1980 there shall he inserted— (h) Chapter XII of Part I of the Financial Services Act 1986".

4. For subsections (1) and (2) of section 47A of the Insurance Companies Act 1982 there shall be substituted— (1) Subject to the following provisions of this section, no information relating to the business or other affairs of any person which has been obtained under section 44(2) to (4) above shall be disclosed without the consent of the person from whom the information was obtained and, if different, the person to whom it relates.(2) Subsection (1) above shall not preclude the disclosure of information to any person who is a competent authority for the purposes of section 449 of the Companies Act 1985.(2A) Subsection (I) above shall not preclude the disclosure of information as mentioned in any of the paragraphs except (k) of subsection (1) of section 149 of the Financial Services Act 1986 or in subsection (3) or (4) of that section or as mentioned in section 449(1) of the Companies Act 1985.(2B) Subsection (1) above shall not preclude the disclosure of any such information as is mentioned in section 149(5) of the Financial Services Act 1986 by any person who by virtue of that section is not precluded by section 148 of that Act from disclosing it.

5. After subsection (1) of section 437 of the Companies Act 1985 there shall be inserted— (1A) Any persons who have been appointed under section 431 or 432 may at any time and, if the Secretary of State directs them to do so, shall inform him of any matters coming to their knowledge of their investigations: and subsection (2) of section 433 of that Act shall he omitted.

6. In section 446 of that Act—

  1. (a) in subsection (3) for the word "436" there shall be substituted the word "437"; and
  2. (b) subsection 5 shall be omitted.

7.—(1) In subsection ( 1) of section 449 of that Act—

  1. (a) for paragraphs (a) and (b) there shall be substituted—
    1. "(a) with a view to the institution of or otherwise for the purposes of criminal proceedings;".
  2. (b) for paragraph (d) there shall be substituted—
    1. "(d) for the purpose of enabling or assisting the Secretary of State to exercise any of his functions under this Act, the Insider Dealing Act, the Prevention of Fraud (Investments) Act 1958, the Insurance Companies Act 1982, the Insolvency Act 1985 or the Financial Services Act 1986,
    2. (dd) for the purposes of enabling or assisting the Department of Economic Development for Northern Ireland to exercise any powers conferred on it by the enactments relating to companies or insolvency or for the purpose of enabling or assisting any inspector appointed by it under the enactments relating to companies to discharge his functions".
  3. (c) after paragraph (e) there shall be inserted—
    1. "(f) for the purpose of enabling or assisting the Bank of England to discharge its functions under the Banking Act 1979 or any other functions,
    2. (g) for the purpose of enabling or assisting the Deposit Protection Board to discharge its functions under that Act,
    3. (h) for any purpose mentioned in section 149(1) (b), (e) (h) (l) or (m) of the Financial Services Act 1986,
    4. (i) for the purpose of enabling or assisting the Industrial Assurance Commissioner or the Industrial Assurance Commissioner for Northern Ireland to discharge his functions under the enactments relating to industrial assurance,
    5. (j) for the purpose of enabling or assisting the Insurance Brokers Registration Council to discharge its functions under the Insurance Brokers (Registration) Act 1977,
    6. (k) for the purpose of enabling or assisting. an official receiver to discharge his functions under the enactments relating to insolvency or for the purpose of enabling or assisting a body which is for the time being a recognised professional body for the purposes of section 3 of the Insolvency Act 1985 to discharge its functions as such.
    7. (l) with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the exercise by a solicitor, auditor, accountant, valuer or actuary of his professional duties,
    8. (m) for the purpose of enabling or assisting an authority in a country or territory outside the United Kingdom to exercise corresponding supervisory functions.".

2 After subsection (1) of that section there shall be inserted— (1A) In subsection (1) above 'corresponding supervisory functions' means functions corresponding to those of the Secretary of State or the competent authority under the Financial Services Act 1986 or to those of the Secretary of State under the Insurance Companies Act 1982 or to those of the Bank of England under the Banking Act 1979 or any other functions in connection with the rules of law corresponding to the provisions of the Insider Dealing Act or Part VII of the Financial Services Act 1986.(1B) Subject to subsection (1C), subsection (1) shall not preclude publication or disclosure for the purpose of enabling or assisting any public or other authority for the time being designated for the purposes of this section by the Secretary of State by an order in a statutory instrument to discharge any functions which are specified in the order.(1C) An order under subsection (1B) designating an authority for the purpose of that subsection may—

  1. (a) impose conditions subject to which the publication or disclosure of any information or document is permitted by the subsection; and
  2. (b) otherwise restrict the circumstances in which that subsection permits publication or disclosure.
(1D) Subsection (1) shall not preclude the publication or disclosure of any such information as is mentioned in section 149(5) of the Financial Services Act 1986 by any person who by virtue of that section is not precluded by section 148 of that Act from disclosing it.

(3) For subsection (3) of that section (competent authorities) there shall he substituted— (3) For the purposes of this section each of the following is a competent authority—

  1. (a) the Secretary of State,
  2. (b) the Department of Economic Development for Northern Ireland and any officer of that Department,
  3. (c) an inspector appointed under this Part by the Secretary of State,
  4. (d) the Treasury and any officer of the Treasury,
  5. (e) the bank of England and any officer or servant of the Bank,
  6. (f) the Lord Advocate,
  7. (g) the director of Public Prosecutions, and the Director of Public Prosecutions for Northern Ireland,
  8. (h) any designated agency or transferee body within the meaning of the Financial Services Act 1986 and any officer or servant of such an agency or body,
  9. (i) any person appointed or authorised to exercise any powers under section 81, 93 or 147 of the Financial Services Act 1986 and any officer or servant of such a person,
  10. (j) the Chief Registrar of Friendly Societies and the Registrar of Friendly Societies for Northern Ireland and any officer or servant of either of them,
  11. (k) the Industrial Assurance Commissioner and the Industrial Assurance Commissioner for Northern Ireland and any officer of either of them,
  12. (l) any constable,
  13. (m) any procurator fiscal.

(4) A statutory instrument containing an order under subsection (1B) is subject to annulment in pursuance of a resolution of either House of Parliament.".

8. After section 451 of that Act there shall be inserted— "Disclosure of information by Secretary of State.451A. The Secretary of State may, if he thinks fit, disclose any information obtained under this Part of this Act—

  1. (a) to any person who is a competent authority for the purposes of section 449, or
  2. (b) in any circumstances in which or for any purpose for which that section does not preclude the disclosure of the information to which it applies.".'.—[ Mr. Channon.]

Brought up, read the First and Second time, and added to the Bill.