Clause 72 - Modification of section 70 in relation to Lloyd’s

Financial Services Bill – in a Public Bill Committee at 11:15 pm on 20th 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)

Will the Minister explain the special treatment of Lloyd’s of London for this provision? I know that we have talked about Lloyd’s in relation to  other clauses, but it appears that in this case only the PRA can conduct an investigation into “the Society”—into Lloyd’s. Clause 70 refers only to the PRA’s duty to investigate, so can the Minister confirm that this provision relates simply to the PRA in that particular way, even though clause 37, which we discussed earlier, split some of the regulation between the PRA and the FCA? Will he explain why the Treasury has gone down this route?

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

Clause 70 relates to the duty of the PRA, so if section 72, as it will be, is to amend section 70, it can do so only in respect of the PRA. It recognises the fact that members of Lloyd’s are not actually authorised by the PRA. If we are to have an inquiry that looks at the way in which members of Lloyd’s are being dealt with, we need to amend the provision in section 70.

Question put and agreed to.

Clause 72 accordingly ordered to stand part of the Bill.