Moved by
Lord Newby
53: After Clause 12, insert the following new Clause—
“Rules of conduct
(1) Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.
(2) Omit sections 64 and 65 (and the italic cross-heading preceding them).
(3) Before section 66 insert—
“Conduct of approved persons and others
64A Rules of conduct
(1) If it appears to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives, the FCA may make rules about the conduct of the following persons—
(a) persons in relation to whom either regulator has given its approval under section 59;
(b) persons who are employees of banks.
(2) If it appears to the PRA to be necessary or expedient for the purpose of advancing any of its objectives, the PRA may make rules about the conduct of the following persons—
(a) persons in relation to whom it has given its approval under section 59;
(b) persons in relation to whom the FCA has given its approval under section 59 in respect of the performance by them of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity;
(c) persons who are employees of PRA-authorised banks.
(3) In subsection (2)—
“PRA-authorised bank” means a bank that is a PRA-authorised person, and
“relevant senior management function” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).
(4) Rules made under this section must relate to the conduct of persons in relation to the performance by them of qualifying functions.
(5) In subsection (4) “qualifying function”, in relation to a person, means a function relating to the carrying on of activities (whether or not regulated activities) by—
(a) in the case of an approved person, the person on whose application approval was given, and
(b) in any other case, the person’s employer.
(6) In this section any reference to an employee of a person (“P”) includes a reference to a person who—
(a) personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and
(b) is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided,
and “employer” is to be read accordingly.””
(a)The administrator must obtain the approval of the Bank of England to any proposals under sub-para. (1).
(b)Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to the objective in section (Objective of FMI administration) of this Act.
(c)Ignore sub-para. (3)(b).
(a)Before making an application in reliance on this paragraph the FMI administrator must give notice to the Bank of England, which is to be entitled to participate in the proceedings.
(b)In making directions the court must have regard to the objective in section (Objective of FMI administration) of this Act.
(a)Ignore sub-paras. (1) and (3).
(b)The Bank of England may apply to the court for the variation or revocation of any directions given by the court.
()“(2) Where a company is in FMI administration, a creditor or member of the company may apply to the court claiming that the FMI administrator is conducting himself or herself in a manner preventing the achievement of the objective of the FMI administration as quickly and efficiently as is reasonably practicable.”
()“(1) On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an FMI administrator of a company to cease to have effect from a specified time.
()(2) The persons who may apply to the court under sub-paragraph (1) are—
()(a) the Bank of England;
()(b) with the consent of the Bank, the FMI administrator.”
(a) Para. 91(1) applies as if the only person who could make an application were the Bank of England.
(b) Ignore para. 91(2).
(a) in accordance with directions of the Bank of England, and
(b) if the Bank is satisfied that they will not prejudice the objective in section (Objective of FMI administration) of this Act.
(a) In considering making an order in reliance on section 241 the court must have regard to the objective in section (Objective of FMI administration) of this Act.
(b) Ignore subsections (2A)(a) and (3) to (3C).