Financial Services Bill Lords committee day five

26 July 2012

The Financial Services Bill continued committee stage, line by line scrutiny of the bill, in the House of Lords yesterday (Wednesday 25 July)

Lords continued to examine Clause Five and look at the Financial Conduct Authority's (FCA) role relating to the interests of different types of consumers. 

Baroness Drake (Labour) moved Amendment 117 looking at the FCA's role in promoting effective competition with the consumer at the heart of the financial system. She withdrew her suggested change looking at 'the ease with which consumers can identify and obtain services which are appropriate to their needs and represent good value for money' and intends to revisit the point at report stage.

The debate then moved on to the topic of 'social impact investments'. Baroness Kramer (Liberal Democrat) moved Amendment 118AZA looking at social impact bonds. She said: 'The bonds are small because they deal with very specific, local social problems, which might include building new social housing within a particular community or the resettlement of prisoners from a particular prison. That small size is key to understanding the regulatory environment in which these bonds need to live and thrive.' 

Baroness Kramer later withdrew the amendment after what she said was a 'positive reply' from the minister, Lord Sassoon (Conservative).

Topics also under discussion included money laundering and establishing a business practitioner panel with representatives from all over the UK. Lords also discussed the overall objectives of a Prudential Regulatory Authority (PRA). 

Members will continue with committee stage day six after the summer recess. The next debate is scheduled for Monday 8 October (business dates are subject to change).

Previous stages of the Financial Services Bill

What is committee stage?

Detailed line by line examination of the separate parts (clauses and schedules) of the bill takes place during committee stage. Any member of the Lords can take part.

It usually starts no later than two weeks after the second reading and can last for one to eight days or more.

The day before committee stage starts, amendments (changes) are published in a marshalled list (amendments on related subjects are grouped together).

During committee stage every clause of the bill has to be agreed to and votes on the amendments can take place. All proposed amendments can be discussed and there is no time limit, or guillotine, on discussion of amendments.

About the Financial Services Bill

The bill was introduced in the Lords at first reading on 23 May.

The bill will amend the Bank of England Act 1998, the Financial Services and Markets Act 2000 and the Banking Act 2009 to make provisions about financial services and markets. It will also exercise certain statutory functions relating to building societies, friendly societies and other mutual societies.

The Financial Services Bill will amend section 785 of the Companies Act 2006, enabling the Director of Savings to provide services to other public bodies.

Further information

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