Clause 15 - Discontinuance or suspension at the request of the issuer: procedure

Financial Services Bill – in a Public Bill Committee at 9:30 am on 8th March 2012.

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Question (6 March) again proposed, That the clause stand part of the Bill.

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury)

Good morning, Mr Leigh. What a wonderful, beautiful spring morning it is—an opportunity to turn over a new leaf and start the day by discussing clause 15 on the discontinuance or suspension at the request of the issuer in terms of the procedures of the United Kingdom Listing Authority. Many hon. Members will remember that we have had quite a long discussion about listing arrangements, so the Minister took the opportunity to present the rationale behind the clause. All that sounded fairly sensible. It might be a drafting issue, but can the hon. Gentleman clarify one particular aspect?

The clause is about allowing swifter communication of the need for discontinuance or suspension, but under what is a sensible provision as soon as the Financial Services Authority has given oral notice at the request of the issuer, presumably written notice will follow as soon as possible. As I read the provision, the Financial Conduct Authority will be required to give only oral notice? In the swift emergency procedures, will an oral notice be followed formally by written notice? I presume that that will be the case, but if the hon. Gentleman will clarify the matter, I am happy for him to write to the Committee. I am just making a procedural point, as I presume oral notice would usually have to be followed by written notice later on down the line.

Photo of Mark Hoban Mark Hoban The Financial Secretary to the Treasury

I assume that confirmation will be required to follow up an oral notice given by the FCA at the request of the issuer rather than the FCA giving it to the issuer, but I imagine that good practice will require a written follow-up.

Question put and agreed to.

Clause 15 accordingly ordered to stand part of the Bill.