Official Listing of Securities, Prospectus and Transparency (Amendment etc.) (EU Exit) Regulations 2019
Lord Geddes Excerpts(5 years, 8 months ago)
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Lord Bates
I am always very happy to take correction from the noble Lord. If he would like, I am happy to ask that the House approve these regulations.
Let me try again. The Treasury has been undertaking a programme of legislation to ensure that, if the UK leaves the EU without a deal or an implementation period, there continues to be a functioning legislative and regulatory regime for financial services in the UK. The Treasury is laying SIs under the European Union (Withdrawal) Act to deliver this, and a number of debates on these SIs have already taken place here and in the House of Commons. The SI being debated today is part of this programme.
The SI will fix deficiencies in UK law relating to the UK’s listing regime, prospectus regime and transparency framework to ensure they continue to operate effectively post exit. The approach taken in this legislation aligns with that of other SIs laid under the EU withdrawal Act, providing continuity by maintaining existing legislation at the point of exit but amending where necessary to ensure that it works effectively in a no-deal context.
Turning to the substance of the SI, many noble Lords will be familiar with the prospectus directive, the transparency directive and the consolidated admissions and reporting directive, or CARD, and with related legislation that is implemented into UK law to set the listing regime, prospectus regime and transparency framework that regulate capital markets activity in the UK.
The transparency directive harmonises transparency requirements across the EU by requiring issuers with securities, such as shares and bonds, admitted to trading on a regulated market to disclose a minimum level of ongoing information to the public. It built on and amended CARD, which co-ordinates the conditions for the admission of securities to official Stock Exchange listing.
A prospectus contains information on an issuer that is seeking to offer securities to the public or is seeking admission to trading on a regulated market. The information they provide is used by investors to make investment decisions. The prospectus directive contains the harmonised rules governing the content, approval, format and distribution of the prospectuses that issuers must produce when securities are offered to the public or admitted to trading on a regulated market in a member state of the European Economic Area.
In a no-deal scenario, the UK would be outside the EEA and outside the EU’s legal, supervisory and financial regulatory framework. The UK legislation implementing the prospectus directive, the transparency directive, the CARD and related legislation therefore needs to be updated to reflect this to ensure that the UK’s listing regime, prospectus regime and transparency framework operate properly in a no-deal scenario. These draft regulations therefore make the necessary amendments to the retained EU legislation to ensure these regimes are operable in a wholly domestic context.
First, this SI will transfer responsibility for powers and functions currently within the remit of EU authorities to the appropriate UK institutions. Specifically, it will transfer powers from the European Commission to HM Treasury, such as the ability to make delegated acts pursuant to the relevant legislation. It also transfers powers to the Financial Conduct Authority from the European Securities and Markets Authority to create and amend certain binding technical standards. This transfer of functions mirrors the current split between the legislative power of the Commission and the regulatory role of ESMA.
Secondly, it alters the scope of the legislation by ensuring that, post exit, EEA issuers wishing to access the UK’s capital markets will be required to have their prospectuses approved directly by the FCA, as any other third country would have to do. Currently, EEA issuers can passport prospectuses approved by other EEA regulators for use in the UK. This aligns with the approach taken across other financial services SIs laid under the EU withdrawal Act.
The SI also introduces grandfathering arrangements that will allow any prospectus approved by an EEA regulator and passported into the UK before exit day to continue to be used up to the end of their normal validity, as well as supplemented with additional information. The end of validity is usually up to 12 months after the prospectus is approved.
Thirdly, this SI extends the exemption under the prospectus directive for certain public bodies from the obligation to produce prospectuses to the same set of public bodies of all third countries post exit. If a UK-only approach were taken, EEA state public bodies that are currently accessing the UK market would be obliged to produce a prospectus to issue securities in the UK that they would not be required to do to issue securities in EEA states. Additionally, extending the exemption to public sector bodies of third countries is consistent with the UK treating EEA member states and third countries equally.
Fourthly, as the explanatory information for this SI states, in a no-deal scenario, the Treasury intends to issue an equivalence decision, in time for exit day, determining that EU-adopted international financial reporting standards can continue to be used to prepare financial statements for UK transparency and prospectus requirements. This will allow issuers registered in EEA states with securities admitted to trading on a regulated market or making an offer of securities in the UK to continue to use EU-adopted IFRS when preparing their consolidated accounts. This decision is consistent with the Government’s approach to provide continuity following the UK’s exit from the EU. This has been welcomed by the industry and is supported by the Financial Conduct Authority.
Additionally, this SI removes obligations within retained EU law for the FCA to co-operate and share information with EU regulators, as this obligation, with no guarantee of reciprocity, would not be appropriate as of exit day. However, the FCA will still be able to co-operate with EU regulators through the existing framework in the Financial Services and Markets Act as it is currently able to do with all other third countries.
This SI makes further amendments to retained EU and UK legislation to ensure that the UK’s listing regime, prospectus regime and transparency framework operate effectively once we leave the EU. It is important to note that, while this instrument covers the UK legislation implementing the prospectus directive, there is no power to domesticate the provisions of the prospectus regulation that apply from July 2019 in the Financial Services (Implementation of Legislation) Bill. These additional provisions make significant changes to the prospectus directive.
Certain provisions of the prospectus regulation have applied since July 2017 and July 2018, with the remainder of the legislation due to apply from July 2019, after the UK leaves the EU. It is the Government’s intention to domesticate the remaining provisions as they will constitute the prospectus regulatory regime from July 2019. However, the EU withdrawal Act will only convert EU legislation into UK law that is already in force and applies immediately before exit day. Therefore, remaining provisions of the prospectus regulation will be domesticated via a statutory instrument laid under the Financial Services (Implementation of Legislation) Bill. The Bill, as currently drafted, requires the affirmative resolution procedure for every statutory instrument made under it, providing Parliament with an opportunity to debate and discuss each file that the Government are implementing. This change, I acknowledge, was as a result of the scrutiny the legislation received in your Lordships’ House, and we are grateful for it.
The UK has played a leading role in shaping the prospectus regulation for the benefit of consumers and industry. It is welcomed by industry and acts to cut the cost to business of producing a prospectus in the UK.
The Treasury has been working closely with the Financial Conduct Authority in the drafting of this instrument. It has also engaged the financial services industry on this SI, and will continue to do so going forward. On 12 December 2018, the Treasury published an instrument in draft, alongside an explanatory policy note on 21 November 2018, to maximise transparency to Parliament and industry.
The Government believe that the proposed legislation is necessary to ensure that the UK’s listing regime, prospectus regime and transparency framework can continue to operate effectively post exit, and that the legislation will continue to function appropriately if the UK leaves the EU without a deal or an implementation period. I hope noble Lords will join me in supporting these regulations, and I commend them to the House.
The Deputy Speaker (Lord Geddes) (Con)
My Lords, for the avoidance of doubt, I say that the Motion before the House is that these draft regulations, laid before the House on 21 January, be approved. The Question is that this Motion be agreed to.
Amendment to the Motion
Visas: Certificates of Sponsorship
Lord Geddes Excerpts(6 years, 1 month ago)
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Baroness Williams of Trafford
At the risk of repeating myself—I will take up the noble Lord’s point about the UK arts and entertainment committee—we are looking for a way around what is creating problems for these artists. We are in no way trying to restrict their entry; we absolutely welcome them.
Lord Geddes (Con)
My Lords, what instructions, if any, are given to our embassies and consulates abroad regarding the issuing of visas to these artists?
Baroness Williams of Trafford
What I can do for my noble friend is check up on the advice that is given, but I am sure we are looking around this issue. I am sure that the advice is clear: we do not want artists who enrich our lives and our society to be impeded in any way.
Budget: Reduction of Waste
Lord Geddes Excerpts(6 years, 11 months ago)
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Lord Bates
The noble Lord is absolutely right in saying that the Environment Agency takes the lead on that. The £30 million was committed to it and in 2015 we announced another £20 million to tackle waste crime, which costs local authorities, the taxpayer and business around £605 million a year. It is a very important part of this, the Environment Agency in England takes the lead on it and it is right that it should have the resources to tackle waste crime.
Lord Geddes (Con)
Will my noble friend use his best endeavours to persuade the publishers of magazines to encase their products in paper rather than plastic, perhaps beginning with the House magazine?
Lord Bates
These are great and innovative ideas and things that ought to be looked at. We have some very strict targets for increasing the recycling of paper products and we are on our way to meeting them by 2020. It means that everyone has to play their part, including the House magazine.
Dogs: Electric Collars
Lord Geddes Excerpts(10 years, 7 months ago)
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Lord Geddes (Con)
My Lords, I was delighted that my noble friend Lady Miller excluded the wiring of gardens. It is on that subject that I want to speak, and I will continue so to do, to dissuade my noble friend from ever bringing in a ban on such electric fencing, if I can call it that.
Like the noble and learned Lord, I also speak from personal experience. We have a four year-old working cocker spaniel on whom we put one of these electric collars when she was about nine months old. Our garden is small and is totally ringed, with the exception of one gate, which is relevant to something that I shall say in a minute. It took only about two hours to train her, and no distress whatever was shown. When we take her on a walk, we take off the collar. We have just one gate on to the road that she will go through. The interesting point, and the reason why I mention it, is that the dog will not go near going through the main gate into our property, which is wired—it is for vehicular access—even without the collar on. Four anchors go down and she just stops rigid. It is amazing what training does. That is without the collar on—she has never tried it with the collar on.
The alternative of, let us say, perhaps one or two slight shocks in this very short training period is for a dog to go, as I have written down here, AWOL—absent without leave—causing death or injury to the dog concerned and indeed to others. I illustrate that with my son’s Labrador, some 30 years ago at a different house. Unfortunately, the postman left the gate open when he came to deliver the post. The dog escaped and was hit by a car and fatally injured, causing injury to the driver of the car, not to mention £1500 of damage to it. That just shows what can happen when a dog can get out. As far as I am concerned, the trade-off is between the electric collar to keep the dog in or the risk of injury to the dog and others in a serious accident on a busy road.
Children and Families Bill
Lord Geddes Excerpts(11 years ago)
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The Deputy Chairman of Committees (Lord Geddes) (Con)
My Lords, as I am sure all your Lordships are aware but I am nevertheless obliged to state, if there is a Division in the Chamber while we are sitting, which I suggest is highly likely, the Committee will adjourn as soon as the Division Bells are rung, or as soon as I have seen same on the Monitor, and resume after 10 minutes.
Clause 21: Special educational provision, health care provision and social care provision
Amendment 71
Young People: Democratic Participation
Lord Geddes Excerpts(11 years ago)
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Baroness Northover
I hope that the noble Lord has had a look at the curriculum for citizenship study. He will, I assume, know that that will be compulsory for the age groups 11 to 14 and 14 to 16. Within that, there will of course be an emphasis on students’ right to register and later to vote in elections.
Lord Geddes (Con)
Is my noble friend aware—I am sure that she is—of the Lord Speaker’s excellent outreach programme, in which I am very pleased to participate, whereby Members of your Lordships’ House go out to schools in order to give them the information pertaining to this question?
Baroness Northover
Yes, I am well aware of that and I know that a number of noble Lords have taken part. They report back that there is great enthusiasm for discussing politics today. It is notable that the number of students who are then voting in elections thereafter seems to increase.
Children and Families Bill
Lord Geddes Excerpts(11 years ago)
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The Deputy Chairman of Committees (Lord Geddes) (Con)
My Lords, with apologies to the noble Baroness, a Division has been called in the Chamber. The Grand Committee stands adjourned for 10 minutes, to resume at 5.12 pm.
The Deputy Chairman of Committees (Lord Geddes)
My Lords, it is now 5.12 pm. I apologise again to the noble Baroness for interrupting her mid-flow. The Grand Committee is now resumed.
Baroness Massey of Darwen
It was quite a welcome break in this long speech. I am moving Amendment 44 and speaking to Amendment 45. They support financial and other support to family and friends carers. I was summarising briefly the benefits to children of such care and the hardships suffered by family and friends carers. Although there is a duty on local authorities to establish a special guardianship support service, similar to adoption support, this does not give an individual carer the right to a specific service. Moreover, there is no equivalent support service for children in kinship care under a residence order or no order. A survey of family and friends carers shows that those with special guardianship orders are the most satisfied with the legal order compared to those who do not have such orders.
Secondly in the list I started earlier, despite the Government’s 2011 guidance on family and friends care, most local authorities are not proactive in supporting family and friends care. There is no dedicated family and friends care team, for example, in most local authorities. This means that the carers and children are dealt with—here we go again—by different teams in children’s services, who may not have specific expertise.
The third factor is that there are no official statistics published on the number of children in family and friends care either nationally or locally. One analysis by the University of Bristol excludes friends care, for example. Local authorities do not routinely collect such data so it is difficult to see how they can design and finance such services. The 2011 guidance is clear: it requires all English local authorities to have a family and friends care policy stating what support they would provide by September 2011. Sadly, much later after that deadline, more than 30% of local authorities still have not published a family and friends care policy. The guidance does not change the legal position but while local authorities have to provide support for looked-after children placed with family and friends carers, which is 6% of children, they do not have to provide support for the 94% of children in family and friends care who are classified as not looked after.
I am aware that, in the climate of financial restrictions, local authorities are seeking to reduce service provision and that non-statutory services are being cut. My Amendment 44, which mirrors the special guardianship support service required, seeks to redress the shortcoming by requiring local authorities to provide support to meet the identified needs of children being raised by family or friends under a private arrangement or residence order. The circumstances as to when this would apply restrict the support to children who would otherwise be in the care system because they are at risk or their parents are incapacitated, dead or in prison. I hope the Minister will be able to address these concerns and meet with the Kinship Care Alliance to discuss the urgency of this situation.
Amendment 45 seeks to insert a new Section 77A into the Social Security Contributions and Benefits Act 1992. It aims to ensure that family and friends carers receive a basic financial allowance from central government to support them in raising a child who cannot remain with their parents and would otherwise be in the care system. Support would be restricted to cases of children whose parents are incapacitated, dead or in prison. The amendment would provide the mechanism for local authorities to provide discretionary support to meet more effectively the assessed needs of children in family and friends care under residence orders or where there is no order at all. However, this does not address the additional costs to family and friends carers of raising a child who is not their own.
Of course, the legal liability for maintaining children lies with the parents at all times, even if their children are cared for by someone else. At no point does legal liability transfer to family and friends carers, except on adoption, but these carers often have existing financial responsibilities—for example, caring for an elderly relative or their own existing children.
They may apply for child benefit, although there are sometimes problems in transferring this from the parents to the carer. They may apply for tax credits according to their means, and an allowance for the child where they are in receipt of income support. However, there is no recognition in the benefits system of the additional costs of raising a child who is not their own. Caring for a child, according to the Fostering Network, is calculated to be 50% higher than the cost of caring for a birth child. This is partly due to emotional distress in the children, maintaining contact with parents and other family members and engaging with social workers and health and education staff. This is why foster carers receive specific allowances from local authorities, paid at substantially higher rates than state benefits and tax credits.
Briefly, there are four key financial issues for family and friends carers in raising a child outside the looked-after system. First, there is the immediate cost of a child coming to live with a carer, often, as I said earlier, in an unplanned or emergency situation. Secondly, there are the costs of applying for a legal order to provide the child with security and permanence. Thirdly, there is the lost income resulting from the carer reducing their working hours, leaving paid work, forgoing career opportunities or losing pension rights. Finally, there are the actual costs of raising a child, which may include a larger home, higher utility bills and so on.
When special guardianship legislation was passed, it was envisaged that many foster carers would apply for special guardianship orders for older children in their care. There have been cases of successful orders in such situations but many foster carers are reluctant to apply for such orders because they fear that the financial support received would be inadequate, as compared to the mandatory support they and the child would receive as foster carers. It is likely that more foster carers would apply for special guardianship orders if they could be guaranteed continued financial support. The regulations should be amended accordingly. I hope that these two amendments will be favourably received by the Government, so that family and friends carers get a much better deal.
Lord McNally
That is the very interesting nature of this debate—whether removing the term will mean that it is not on the tin, so people will not be sure what they are letting themselves in for, or whether, as the noble and learned Baroness, Lady Butler-Sloss, is suggesting, it being on the tin will deter people from opening the tin. As I said, we have commissioned research on this. We are only at Committee stage. I will make the outcome of that research available. There is no absolute certainty at this stage as to which of us is right about this.
The Deputy Chairman of Committees
My Lords, with great respect to the noble Lord, a Division has been called in the Chamber. The Grand Committee stands adjourned until 6.27 pm.
UN: International Year of Youth
Lord Geddes Excerpts(13 years, 7 months ago)
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Baroness Kinnock of Holyhead
My Lords, I, too, pay tribute to and thank the noble Baroness, Lady Morris of Bolton, for initiating this debate and for calling, as other noble Lords have done, for greater emphasis and a stronger focus on measures intended substantially to increase the participation and the quality of life of young people. The actions and the desired outcomes we have discussed here today, as noble Lords have shown, make absolute and infinite sense.
Young people have potentially a huge contribution to make because of their experience and understanding, which they can add to global efforts to meet the millennium development goals and to fight against inequality and discrimination. There has, quite rightly, been substantial investment in young children, especially those under five. However, that does not mean that there is any justification for giving insufficient attention to the crucial second decade of life, which of course is the focus of the UN International Year of Youth.
Youths continue to be subsumed under the category of children but are too often overlooked in the programming and resources available; it is far more likely that that programming and those resources will be directed to younger children. It means that young people’s contributions are overlooked and neglected. As many noble Lords will know, many of these young people are heads of households, often caring for young siblings, fetching water and preparing food, yet they have absolutely no authority within their community and are excluded from all the decision-making. We now risk jeopardising the gains in early and middle childhood that have been made since 1990 and seeing a deterioration in those advances.
I am reminded of the story of a young woman speaking at a recent UN meeting. She asked the delegates, “How old will you be in 2050?”. The chair of the committee admitted that he would be 110 and therefore unlikely to see the results of our failure to act. The fact is that the kind of world in which that young woman lives will depend both on those who inherit it and on those who bequeath it to them. Noble Lords have talked about young people being our future. I would say that young people are our present too, and it is very important that we remember that.
It has certainly been my experience that all too often young people are not consulted, are not taken seriously and are not given a voice, when the parameters of rights and responsibilities are clearly agreed under the UN Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination against Women. Tackling the challenges faced by young women is imperative at this time, as many noble Lords have said.
The Deputy Chairman of Committees (Lord Geddes)
With many apologies to the noble Baroness, a Division has now been called in the Chamber. The Grand Committee stands adjourned until 5.26 pm.