Schedule 8 - Sections 26 to 31: minor and consequential amendments

Financial Services Bill – in a Public Bill Committee at 9:30 am on 15th March 2012.

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Photo of Mark Hoban Mark Hoban The Financial Secretary to the Treasury 9:30 am, 15th March 2012

I beg to move amendment 103, page 218, line 31 [Schedule 8], leave out paragraph 3 and insert—

‘3 (1) Section 287 (application by an investment exchange) is amended as follows.

(2) In subsections (1) and (2) for “the Authority”, in each place, substitute “the FCA”.

(3) In subsection (3)—

(a) in paragraph (a), after “provision” insert “by another person”,

(b) in paragraph (b), for “clearing services” substitute “services falling within section 285(2)(b)”, and

(c) in paragraphs (d) and (e), for “the Authority” substitute “the FCA”.’.

Photo of Edward Leigh Edward Leigh Chair, Public Accounts Commission, Chair, Public Accounts Commission

With this it will be convenient to discuss Government amendments 104 to 109.

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

This is a series of consequential amendments that deals with one matter. Clause 26 amends section 285 of FSMA to ensure that a recognised investment exchange that also acts as a central counter-party clearing house must be separately designated by the Bank of England as a recognised clearing house. We have discussed that divide. The amendments complete the necessary work of clause 26. They include in schedule 8 to the Bill the consequential amendments to other provisions in part 18 that refer to the term “clearing services” and the services offered under the exemptions specified in section 285, which will be changed under clause 26.

Amendment 103 agreed to.

Amendments made: 104, in schedule 8, page 218, line 38, at end insert—

‘(4) In subsection (3)(b), after “clearing services” insert “or services falling within section 285(3)(b)”.’.

Amendment 105, in schedule 8, page 219, line 17, leave out ‘and’.

Amendment 106, in schedule 8, page 219, line 18, at end insert—

‘(c) omit the “or” following paragraph (a), and

(d) at the end of paragraph (b) insert “or

(c) the provision by the applicant of services falling within section 285(2)(b) or (3)(b),”’.

Amendment 107, in schedule 8, page 219, line 29, leave out sub-paragraphs (3) and (4) and insert—In subsection (6)—

(a) in paragraph (a), after “provision” insert “by another person”,

(b) in paragraph (b), for “clearing services” substitute “services falling within section 285(2)(b)”, and

(c) for “the Authority” substitute “the FCA and the Bank of England”.

‘(4) In subsection (7)—

(a) in paragraph (a), after “clearing services” insert “or services falling within section 285(3)(b)”,

(b) in paragraph (b), after “clearing services” insert “or services falling within section 285(3)(b)”, and

(c) for “the Authority” substitute “the Bank of England and the FCA”.’.

Amendment 108, in schedule 8, page 221, line 11, after ‘provision)’ insert—

‘(a) in subsection (1), for the words from “with” to the end substitute “with—

(a) its business as an investment exchange,

(b) the provision by it of clearing services, or

(c) the provision by it of services falling within section 285(2)(b) or (3)(b).”, and

(b) ’.

Amendment 109, in schedule 8, page 222, line 30, at end insert—

35A In section 313 (interpretation), in subsection (4), after “clearing services” insert “or services falling within section 285(3)(b)”.’.— (Mr Hoban.)

Schedule 8, as amended, agreed to.