Banking Bill — Committee (4th Day)

Part of the debate – in the House of Lords at 3:45 pm on 20th January 2009.

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Photo of Lord Myners Lord Myners Parliamentary Secretary, HM Treasury 3:45 pm, 20th January 2009

The noble Lord, Lord Stewartby, addresses a question that reflects the reality of complex financial institutions. We have already addressed the issue of an essential service being provided to a banking subsidiary by another arm of the group. The noble Lord also refers to outsourcing arrangements in which a critical dependency is secured from an unaffiliated, unrelated entity. Those contracts would follow on with the transferee institution, so nothing in the Bill places at risk critical dependencies that are covered by an external third-party or non-related supplier. The noble Lord, Lord Stewartby, is right to seek assurance on that, given the reality of how many of our larger banking organisations are now structured.

Amendment 107 withdrawn.

Clause 63 agreed.

Clause 64 : Special continuity obligations: property transfers

Amendments 108 and 109 not moved.

Clause 64 agreed.

Clause 65 agreed.

Clause 66 : General continuity obligation: share transfers

Amendment 110 not moved.

Clause 66 agreed.

Clause 67 : Special continuity obligations: share transfers

Amendments 111 and 112 not moved.

Clause 67 agreed.

Clause 68 agreed.

Clause 69 : Continuity obligations: consideration and terms

Amendments 113 and 114 not moved.

Clause 69 agreed.

Clause 70 : Continuity obligations: termination

Amendment 115

Moved by Baroness Noakes

115: Clause 70, page 36, line 3, at end insert—

"( ) The continuity authority shall ensure that compensation is payable to the person on whom the obligation is imposed if that person suffers financial loss because of the nature, extent or timing of a notice given under subsection (1)."