Further FSMB amendments for Lords Grand Committee

Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would:

  • remove short selling from the list of potential designated activities;
  • ensure that when requirements are placed on critical third parties, the burden should be minimised so far as reasonably practical;
  • probe what is means by “relevant international standards” and how they relate to the competitiveness and growth objective;
  • insert a new clause to place proportionality within the general duties of PRA and FCA, rather than it remaining a regulatory principle;
  • require PRA and FCA to include a statement of how they have taken the competitiveness and growth objective into account when consulting on rules;
  • establish a new Committee, the Financial Services Regulators Committee of Parliament which would oversee the PRA, FCA and PSR;
  • require PRA and FCA to explain how they have undertaken efficiency comparisons, required to be disclosed in their annual reports;
  • introduce sunset provisions to powers on cash access and distribution of 10 years unless Treasury extends them;
  • add a new criminal offence of “passing off” which would be where a persons actions or omissions suggested to a reasonable person that activities are in whole or part authorised, when they are not. This offence could be committed by an authorised as well as an unauthorised person;
  • require that support services to help older people who are victims of fraud specifically be considered as part of the national strategy on financial fraud;
  • introduce and offence of failure to prevent fraud and facilitation of fraud for authorised firms where they or their SMF holders fail to prevent fraud or its facilitation by associated persons – drafted in a similar manner to the Bribery Act corporate criminal offence; and
  • introduces a provision to ensure that retained EU law will cease to have effect no later than 31 December 2026.

Emma Radmore