Clause 45 - Interpretation of FSMA 2000

Financial Services Bill – in a Public Bill Committee at 3:30 pm on 15th March 2012.

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

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury)

The clause contains several technical changes to the interpretation of the Financial Services and Markets Act provisions. They are generally uncontroversial, but there are a couple of anomalies. The Minister might prefer to write to me than deal with them straight away and, if so, that will be fine.

Can the hon. Gentleman explain why the definition of money laundering rules has been omitted from the provisions? What is the definition of money laundering under the Bill supposed to be? Under other parts of the Bill, such as clause 27, and section 402 of FSMA, money laundering is defined under schedule 7 of the Counter-Terrorism Act 2008. However, that is not the case under the Bill, which refers to article 1 of the European Communities directive 2005/6/EC. A couple of issues  have been raised about the definition of money laundering, but I wanted to raise that significant, technical point.

My other point relates to proposed new section 421ZA of FSMA 2000, which defines “immediate group”. The new definition in the Bill is nearly identical to that provided in the FSA handbook; it includes all of paragraph (1) of the FSA handbook glossary definition, but not paragraph (2). That is missing from the clause. Will the Minister clarify whether I have missed something, or whether there is an omission?

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury)

I am grateful for the Minister’s succinct commitment.

Photo of Edward Leigh Edward Leigh Chair, Public Accounts Commission

If we always had such brief comments, we would be going very quickly.

Question put and agreed to.

Clause 45 accordingly ordered to stand part of the Bill.