Tag: Lord Myners

The below Parliamentary question was asked by Lord Myners on 2016-03-23.

To ask Her Majesty’s Government whether they have agreed to cross-margining of variable payments through LCH Clearnet and Eurex; and if so, who will be responsible for regulating these separate entities; and whether they have required any increase in capital or margin.

Lord O’Neill of Gatley

European Regulation No 648/2012 (EMIR) establishes a strict supervisory framework for CCPs, which in the UK are regulated by the Bank of England.

EMIR’s requirements – which continue to apply in the event of a merger or change of control of a CCP – include that a CCP must be sufficiently well-resourced to withstand extreme market events, including the simultaneous default of its two largest clearing members.

In the event of a qualifying change of control the Bank of England must under EMIR also assess the suitability of the proposed acquirer and financial soundness of the proposed acquisition.

Copies of the Bank of England’s 2016 report on supervision of financial market infrastructures were laid before Parliament on 4 March and are available in the House library.

The below Parliamentary question was asked by Lord Myners on 2016-04-25.

To ask Her Majesty’s Government whether they will review the legislation protecting creditors in the event of business failure.

Baroness Neville-Rolfe

We do keep insolvency legislation under review. We seek to ensure that the legislative framework strikes the right balance between rescuing a business, which may also save jobs, and the rights of creditors who may lose out financially.

The below Parliamentary question was asked by Lord Myners on 2016-05-03.

To ask Her Majesty’s Government, further to the Written Answers by Lord O’Neill of Gatley on 26 April (HL7583 and HL7584), what assessment they have made of whether the same collateral could be used to support risk at both LCH and Eurex.

Lord O’Neill of Gatley

I refer the noble Lord to my previous answers of 26 April (HL7583 and HL7780) which noted that, once notified of the merger, the Bank of England and Financial Conduct Authority would assess the proposal from a regulatory standpoint, and that it would also be subject to assessments and approvals by the competition authorities, overseas regulators, and shareholders.

My previous answers further noted that any inter central counterparty links would need to be assessed against the relevant parts of European Market Infrastructure Regulation (EMIR) by the Bank of England, as supervisor of LCH.

The below Parliamentary question was asked by Lord Myners on 2016-06-07.

To ask Her Majesty’s Government whether, in the light of the current situation facing the UK’s retail industry, they will reconsider their decision not to publish the report by the Insolvency Service into the collapse of Comet Group plc.

Baroness Neville-Rolfe

The Insolvency Service’s fact-finding inquiry into Comet was conducted under Section 447 of the Companies Act 1985. Section 449 of that Act makes it a criminal offence to share any information gathered in the course of the investigation with any person, other than in the strictly prescribed circumstances laid out in the Act.

In the light of this legal position I am unable to reconsider the request to publish the report.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government how they propose to enforce the commitments they have obtained from SoftBank in connection with employment and the location of the headquarters of ARM Holdings.

Baroness Neville-Rolfe

The Takeover Panel is responsible for enforcing the post offer undertakings given by SoftBank under the terms of the Takeover Code. Grant Thornton LLP has been appointed as an independent supervisor under the Code to monitor compliance with the undertakings. The Takeover Panel can require SoftBank to submit written progress reports in such form and as frequently as it requires and can take disciplinary action if the undertakings are not fulfilled. The Department for Business, Energy and Industrial Strategy will continue to monitor developments.

The below Parliamentary question was asked by Lord Myners on 2016-03-23.

To ask Her Majesty’s Government how much the UK contributes towards the subsidisation of sugar production.

Lord Gardiner of Kimble

Sugar production is not directly subsidised in the UK. However, sugar beet growers in the UK are entitled to make a claim for support under the Basic Payment Scheme of the Common Agricultural Policy.

The below Parliamentary question was asked by Lord Myners on 2016-04-25.

To ask Her Majesty’s Government whether they will establish an inquiry into the circumstances surrounding BHS being placed in administration, and in particular in to the implications for employees, pension scheme members and creditors.

Baroness Neville-Rolfe

When a company enters administration, the administrators have to report to my right hon. Friend the Secretary of State for Business, Innovation and Skills within three months on the conduct of the directors.

In the case of BHS the Insolvency Service is making early contact with the administrators to discuss the directors’ conduct and to consider whether further steps, such as a detailed investigation, may be necessary.

Where misconduct is established it can lead to disqualification of a director for between 2 and 15 years.

The below Parliamentary question was asked by Lord Myners on 2016-05-03.

To ask Her Majesty’s Government whether it is their policy that the ultimate holding company for the London Stock Exchange remains incorporated in the UK.

Lord O’Neill of Gatley

I refer the noble Lord to my previous answers of 26 April (HL7583 and HL7780) which noted that, once notified of the merger, the Bank of England and Financial Conduct Authority would assess the proposal from a regulatory standpoint, and that it would also be subject to assessments and approvals by the competition authorities, overseas regulators, and shareholders.

My previous answers further noted that any inter central counterparty links would need to be assessed against the relevant parts of European Market Infrastructure Regulation (EMIR) by the Bank of England, as supervisor of LCH.

The below Parliamentary question was asked by Lord Myners on 2016-06-07.

To ask Her Majesty’s Government, further to the answer by Baroness Neville-Rolfe on 6 June (HL Deb, col 626), on how many occasions since its inception has the Pensions Regulator used provisions for dawn raids, and how it determines the circumstances in which such provisions should be employed.

Baroness Altmann

The Pensions Regulator has a power to request information which it exercises regularly and successfully. This means that it is often not necessary to use the powers under section 73 (inspection) or section 78 (warrants) of the Pensions Act 2004.

Under section 78, a justice of the peace may issue a warrant where there are reasonable grounds for believing that there are –

• relevant documents which would be removed, or made inaccessible, from the premises, or hidden, tampered with or destroyed,

or that

• an offence has been committed, or
• a person will do any act which constitutes a misuse or misappropriation of the assets of an occupational pension scheme or a personal pension scheme.

This power is only used in extreme circumstances, and such cases usually involve suspicions of wider criminal activity. Since 2004, the Regulator has used its powers to either inspect premises or issue a warrant on five occasions.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government whether they plan to introduce legislation restricting the acquisition of key UK companies by foreign investors while they consider their industrial strategy.

Baroness Neville-Rolfe

As we build an economy that works for all, the Government will keep the law on takeovers under constant review.