Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Clause 110

Banking Bill – in a Public Bill Committee at 2:15 pm on 13th November 2008.

Alert me about debates like this

Role of FSCS

Question proposed, That the clause stand part of the Bill.

Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

I would like to confirm the purpose of subsection (2)(a), which says that

“money may be raised through the imposition of a levy under Part 15 of the Financial Services and Markets Act in respect of expenditure or possible expenditure under this section”.

Does “expenditure” cover only the funds that have been transferred or other costs that might be incurred as well?

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

The clause sets out the role and functions of the FSCS in relation to a bank insolvency. It provides that the FSCS can impose a levy, under its powers in part 15 of FSMA, in order to be able to meet the expenditure under part 2 of the Bill. The word “expenditure” in subsection (2) covers both the areas that the hon. Gentleman asked about. I hope that that clarification is helpful to the Committee.

Question put and agreed to.

Clause 110 ordered to stand part of the Bill.