The Financial Services Bill (the “Bill”) entered day three of the report stage in the House of Lords on 20th November 2012. Previous consideration of the Bill was given on 6th and 12th November 2012.
The purpose of the report stage is to allow members of the House of Lords further opportunity to consider and discuss all amendments to a bill. Once the report stage is over, the Bill will be republished with all agreed amendments and the Bill will proceed to the third reading where the Lords will have their final chance to debate and amend the Bill.
A number of clauses in the Bill have been debated throughout report stage. Day three of report stage focused on clause 7 of the Bill – “Extension of scope of Regulation” - which amends s. 22 of the Financial Services and Markets Act 2000 (“FSMA 2000”). Discussion was had in respect of the London Interbank Offered Rate (“LIBOR”) scandal earlier this year and reference made to the findings of the Wheatley Review. Amendments were agreed to the Bill which enable benchmarking activities, such as LIBOR, to be brought within the scope of regulation under FSMA 2000.
The debate also involved discussion in respect of the powers of the soon to be created Prudential Regulation Authority and the Financial Conduct Authority, prohibition orders and when consumers should be notified if their deposits are protected by the Financial Services Compensation Scheme.
The Lords are due to continue considering the Bill on 26th November 2012.
The day three report stage Hansard report can be read here.