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

I think we could possibly do this formally as the debates we have had referred to clauses 1, 2 and, in effect, 3. I think we have had a full enough discussion. It is amazing to see what can happen when the back of the hon. Member for Nottingham East is turned. [ Interruption. ]

Some of the comments made by the Whips from a sedentary position may tempt me not to move at such speed. Seriously, it is important just to put a couple of points on the record. The Clause mirrors in many ways the changes made further upstream to the PRA, with consequential changes to the objectives of the Financial Conduct Authority. As hon. Members may remember, those of us who sat on the Committee that considered the Financial Services Bill last year, including myself and my hon. Friend the Member for Nottingham East, spent considerable amounts of time discussing the objectives of the respective parts of those organisations. At that time, we talked about how important it was that there should be harmony in the way the PRA and the FCA worked in practice. Considerable numbers of hours were spent discussing that issue in detail.

We are pleased to see the way the recommended changes have been implemented in the clause. However, I have a couple of points that I hope the Minister will elaborate on, in relation to how the FCA would work in respect of the high level of continuity issues that are set out in the clause. The PRA may well be sending out routine investigatory inquiries to retail banks, and the FCA will, presumably, audit the arrangements periodically. I would like to hear the Minister explain how that will be co-ordinated. Will we end up with two sets of continuity regulators? That could lead to difficulties and lack of co-ordination. How will the bodies split their activities?

I do not want to reopen the question, which we discussed in the Committee that considered what is now the Financial Services Act 2012, whether it is sensible to have both the FCA and the PRA in the way that is determined in the Act, and we do not oppose the clause. However, it would be helpful to hear some reassurance and explanations from the Minister.

I am of course happy to speak to the Clause and respond to the hon. Lady’s questions. In essence, the inclusion of the clause relating to the FCA is a piece of future-proofing. All of us intend and expect that the burden of responsibility for the arrangements will be on the PRA. That is absolutely our intention in terms of the activity that has been specified from the beginning, which is the regulation of deposits; that is very much going to be a PRA responsibility. However, during the course of scrutiny mention has been made that, as in future there could be an activity that came under the FCA’s remit, it would be sensible to make the same provisions available to the FCA in the Bill. Members who have studied the Bill will see—it has been clear in our discussion of the amendments that we have considered so far—that the provisions will apply to the FCA and the PRA in an identical way.

The hon. Lady made some reasonable points about the arrangements for ensuring that there is no difference of view or in approach between the PRA and the FCA in the event, unintended though that is, that activities  would fall across the different regulators. As she and other Members will know from sitting on previous Bill Committees, there are arrangements to co-ordinate the work of the PRA and the FCA. Indeed, the two institutions are required to co-ordinate their functions under new section 3D of the Financial Services and Markets Act 2000, and are also required to maintain a current memorandum of understanding as to how they work together. We should also reflect on the fact that the arrangements for mutual contact between the PRA and the FCA are well established, and the FCA’s objective in this case is narrowly focused on only those activities related to the conduct regulation of particular firms.

We should regard the clause as a measure for the purpose of ensuring that we do not have to come back to the House for primary legislation should there be some activities in future that the FCA needs to look into. Bearing in mind the extensive discussions to ensure that the two bodies under the twin peaks model are co-ordinated, and in the light of the discussions we have had about the powers of the PRA and the FCA, I hope that the Committee will find itself satisfied.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.