§ 4 Clause 14, page 8, line 32, at end insert—
§ ("(2) For the purposes of the Financial Services and Markets Act 2000, the functions conferred on the Financial Services Authority by virtue of Schedules 1 and 2 are to be treated as conferred by that Act.
§
(3) Section 356 of that Act (Authority's powers to participate in proceedings: company voluntary arrangements) is amended as follows—
(a) for subsection (1), there is substituted—
(1) Where a voluntary arrangement has effect under Part I of the 1986 Act in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under section 6 or 7 of that Act.",
(b) for subsection (2), there is substituted—
(2) Where a voluntary arrangement has been approved under Part II of the 1989 Order in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under Article 19 or 20 of that Order.",
(c) in subsection (3), for "either" there is substituted "any".")
§ Lord McIntosh of HaringeyMy Lords, I beg to move that this House do agree with the Commons in their Amendment No. 4. I should like to speak also to Amendments Nos. 5, 19 and 29. The amendments deal with an issue which I brought to the attention of the House at Report stage when I explained that following the successful passage of the Financial Services and Markets Act 2000 through Parliament, we would need to consider whether there were any implications for this Bill.
Part XXIV of the Financial Services and Markets Act sets out the rights of the Financial Services Authority to participate in insolvency procedures involving regulated persons, including companies doing financial services business. I am sure the House will agree that it would be both incongruous and create a gap in the authority's regulatory powers if the authority was not to have similar rights in respect of the new company voluntary arrangement provisions to those it has in other types of insolvency procedures. To omit such powers from the Bill may be potentially damaging to the interests of the consumers.
We have also taken the opportunity to deal with a matter which was omitted from the Financial Services and Markets Act when it was passing through Parliament. Amendments Nos. 4 and 5 provide that the authority should be given the right to apply to the court on the ground that any of the company's creditors or any other person is dissatisfied by the actions of the supervisor, and for the authority to be heard if such an application is made by another. That applies whether or not the voluntary arrangement was preceded by a moratorium, or whether it is here or in Northern Ireland.
Moved, That the House do agree with the Commons in their Amendment No. 4.—(Lord McIntosh of Haringey.)
On Question, Motion agreed to.