House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

Report Stage Proceedings: 22 May 2012
36

Financial Services Bill, continued

(b)
in paragraph (b), for “Authority” substitute “regulator”.’.

Mr Chancellor of the Exchequer

Agreed to  18

Page  315,  line  22  [Schedule  21],  after ‘this’ insert ‘Part of this’.

Mr Chancellor of the Exchequer

Agreed to  19

Page  316,  line  11  [Schedule  21],  leave out ‘the scheme’ and insert ‘a scheme under

this paragraph’.

Mr Chancellor of the Exchequer

Agreed to  20

Page  316,  line  18  [Schedule  21],  after first ‘this’ insert ‘Part of this’.

Mr Chancellor of the Exchequer

Agreed to  21

Page  317,  line  2  [Schedule  21],  at end insert—

‘Part 2

Property, rights and liabilities of Office of Fair Trading

Interpretation

6
In this Part of this Schedule “the OFT” means the Office of Fair Trading.

Transfer schemes

7    (1)
This paragraph applies if after the passing of this Act the Treasury make an

order under section 22 of FSMA 2000 which has the effect that an activity—

(a)
ceases to be an activity in respect of which a licence under section 21

of Consumer Credit Act 1974 is required or would be required but for

the exemption conferred by subsection (2), (3) or (4) of that section or

paragraph 15(3) of Schedule 3 to FSMA 2000, and

(b)
becomes a regulated activity for the purposes of FSMA 2000.

      (2)
The OFT must make one or more schemes under this paragraph for the transfer

of property, rights and liabilities of the OFT to the FCA.

      (3)
A scheme under this paragraph made by the OFT is not to be capable of

coming into force unless it is approved by the Treasury and the Secretary of

State.

      (4)
The OFT may not submit a scheme under this paragraph to the Treasury or the

Secretary of State for their approval without the consent of the FCA.

      (5)
Sub-paragraph (6) applies if —

Report Stage Proceedings: 22 May 2012
37

Financial Services Bill, continued

(a)
the OFT fails, before such time as may be notified to it by the Treasury

as the latest time for submission of a scheme under this paragraph in

connection with an order falling within sub-paragraph (1), to submit

such a scheme to the Treasury and the Secretary of State for their

approval, or

(b)
the Treasury or the Secretary of State decide not to approve a scheme

that has been submitted to them by the OFT (either with or without

modifications).

      (6)
Where this sub-paragraph applies, the Treasury may, with the approval of the

Secretary of State, make a scheme under this paragraph for the transfer to the

FCA of such of the OFT’s property, rights and liabilities as appear to the

Treasury appropriate to be transferred to the FCA in consequence of the order

falling within sub-paragraph (1).

      (7)
The property, rights and liabilities which are the subject of a scheme under this

paragraph are transferred in accordance with the provisions of the scheme on

such day as the scheme may specify.

      (8)
The OFT must provide the Treasury or the Secretary of State with all such

information and other assistance as either of them may reasonably require for

the purposes of, or otherwise in connection with, the exercise of any power

conferred on the Treasury or the Secretary of State by this paragraph.

      (9)
In the following provisions of this Part of this Schedule a scheme under this

paragraph is referred to as a “transfer scheme”.

8
The property, rights and liabilities that may be the subject of a transfer scheme

include—

(a)
any that would not otherwise be capable of being transferred or

assigned, and

(b)
rights and liabilities under a contract of employment.

9
A transfer scheme may—

(a)
apportion, or provide for the apportionment of, property, rights and

liabilities,

(b)
define the property, rights and liabilities to be transferred by

specifying them or by describing them (including describing them by

reference to functions that are transferred by the order falling within

paragraph 7(1));

(c)
contain provision for the payment of compensation by the FCA to the

OFT;

(d)
contain provision for the payment of compensation by the OFT or the

FCA to any person whose interests are adversely affected by the

scheme;

(e)
contain supplemental, incidental, transitional and consequential

provision.

10
A transfer scheme which relates to rights and liabilities under a contract of

employment must provide for the transfer to which the scheme relates to be

treated as if it were a relevant transfer for the purposes of the Transfer of

Undertakings (Protection of Employment) Regulations 2006.’.



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