THE AUTHORITY'S GENERAL DUTIES (Hansard, 5 June 2000)

§ The Economic Secretary to the Treasury (Miss Melanie Johnson)
I beg to move, That this House agrees with the Lords in the said amendment.

§ Madam Speaker
With this we may discuss Lords amendments Nos. 7 and 82.

§ Miss Johnson
Amendment No. 1 is a technical change to clause 2, which sets out the general duties of the Financial Services Authority. Subsection (2) sets out its regulatory objectives while subsection (3) lists a number of principles to which it must have regard in discharging its general functions. Subsection (3)(f) makes it clear that the authority needs to minimise any adverse effects on competition that may result from its work. The amendment makes it clear that this requirement applies to any action that the authority takes in the discharge of its functions.
Amendment No. 7 concerns value-for-money reviews. Clause 10 enables the Treasury to appoint an independent person to carry out value-for-money reviews of the FSA in its competent authority function, as well as its other functions under the Bill. The amendment simply makes it clear that under reviews of the authority generally, reviews of the competent authority cannot cover the merits of its general policy or principles but only the competent authority's use of resources in discharging its functions under part VI.
Amendment No. 82 introduces a new clause after clause 72, requiring the competent authority to have regard to a number of things in discharging its general functions. Those general functions are defined in subsection (2). The new provision is similar to clause 2(3). The requirements of subsection (1) are intended to 39 act as constraints on the way in which the competent authority carries out its functions under part VI. Unlike clause 2(3), the new provision does not include a principle on the responsibilities of senior management. The competent authority is not responsible for the conduct of business or the prudential regulation of listed companies.