Deregulation Bill (HC Bill 162)

Measures affecting business: general

1 Health and safety at work: general duty of self-employed persons

(1) Section 3 of the Health and Safety at Work etc. Act 1974 (general duty of
employers and self-employed to persons other than their employees) is
5amended in accordance with subsection (2).

(2) In subsection (2) (which imposes a general duty with respect to health and
safety on self-employed persons)—

(a) after “self-employed person” insert “who conducts an undertaking of a
prescribed description”;

(b) 10for “his undertaking” substitute “the undertaking”.

(3) In section 11 of that Act (functions of the Executive), in subsection (4)(b), after
“does not” insert “, except in relation to regulations under section 3(2),”.

(4) Where this section comes into force at a time when there is in force an Order in
Council made under section 84(3) of the Health and Safety at Work etc. Act
151974 that applies section 3 or 11 of that Act to matters outside Great Britain, that
Order is to be taken as applying that section as amended by this section.

2 Removal of employment tribunals’ power to make wider recommendations

(1) In section 124 of the Equality Act 2010 (remedies available to an employment
tribunal in discrimination cases etc), in subsection (3) (which describes the
20recommendations that an employment tribunal may make)—

(a) in the opening words, after “adverse effect” insert “on the
complainant”;

(b) omit paragraphs (a) and (b).

(2) In consequence of subsection (1)—

(a) 5in section 124(7) of that Act omit “in so far as it relates to the
complainant”;

(b) omit section 125 of that Act (remedies: national security).

3 Apprenticeships: simplification

(1) Schedule 1 makes provision about apprenticeships.

(2) 10Part 1 of the Schedule amends Part 1 of the Apprenticeships, Skills, Children
and Learning Act 2009 (“the 2009 Act”) so as to simplify the provision made by
that Part about English apprenticeships.

(3) Part 2 of the Schedule contains further amendments of the 2009 Act in
consequence of the amendments made by Part 1.

(4) 15Part 3 of the Schedule contains minor amendments of the provision made by
Part 1 of the 2009 Act about Welsh apprenticeships.

4 English apprenticeships: funding arrangements

(1) The Secretary of State may make arrangements with the Commissioners for
Her Majesty’s Revenue and Customs under which the Commissioners are
20responsible for the administration of payments that may be made by the
Secretary of State to employers in connection with the provision by them of
opportunities for individuals to complete an approved English apprenticeship.

(2) The Commissioners may by regulations make provision as to the
administration of payments where arrangements are made under subsection
25(1).

(3) The regulations may, in particular, provide that the Commissioners may,
instead of making payments to employers—

(a) permit them to deduct equivalent amounts from payments that they
are required to make to the Commissioners and that are of a kind
30specified in regulations;

(b) provide them with vouchers of equivalent amounts which may be used
by them in connection with their provision of opportunities for
individuals to complete an approved English apprenticeship.

(4) The regulations may make different provision for different cases.

(5) 35The Secretary of State may disclose information to the Commissioners, or to a
person providing services to the Commissioners, for the purpose of
arrangements made under subsection (1).

(6) The Commissioners may disclose information obtained by them in connection
with arrangements under subsection (1) to the Secretary of State, or to a person
40providing services to the Secretary of State, for the purpose of the Secretary of
State’s functions in relation to approved English apprenticeships.

(7) Information disclosed under subsection (6) may not be disclosed by the
recipient of the information to any other person without the consent of the
Commissioners.

(8) If a person discloses, in contravention of subsection (7), any revenue and
5customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
10disclosure of such information in contravention of section 20(9) of that Act.

(9) Regulations under this section may be made only with the consent of the
Secretary of State.

(10) Regulations under this section must be made by statutory instrument.

(11) A statutory instrument containing regulations under this section is subject to
15annulment in pursuance of a resolution of either House of Parliament.

(12) In this section—

• “approved English apprenticeship” has the same meaning as in Chapter
  A1 of the Apprenticeships, Skills, Children and Learning Act 2009 (see
  Schedule 1);

• 20“revenue and customs information relating to a person” has the same
  meaning as in section 19 of the Commissioners for Revenue and
  Customs Act 2005 (see section 19(2) of that Act).

Measures affecting business: particular areas

5 Driving instructors

(1) 25Schedule 2 makes provision to simplify the regulation of driving instructors by
removing the separate system for the registration of disabled instructors.

(2) Part 1 of the Schedule contains amendments of Part 5 of the Road Traffic Act
1988 as amended by Schedule 6 to the Road Safety Act 2006.

(3) Part 2 of the Schedule contains transitory amendments of Part 5 of the Road
30Traffic Act 1988 which have effect before the commencement of Schedule 6 to
the Road Safety Act 2006.

(4) Part 3 of the Schedule contains consequential and related amendments.

6 Motor insurers

(1) In Part 6 of the Road Traffic Act 1988 (compulsory insurance or security against
35third-party risks), section 147 (issue and surrender of certificates of insurance
and of security) is amended as follows.

(2) In subsection (1), for “A policy of insurance shall be of no effect for the
purposes of this Part of this Act unless and until there is delivered by the
insurer” substitute “An insurer issuing a policy of insurance for the purposes
40of this Part of this Act must deliver”.

(3) In subsection (2), for “A security shall be of no effect for the purposes of this
Part of this Act unless and until there is delivered by the person giving the

security” substitute “A person giving a security for the purposes of this Part of
this Act must deliver”.

(4) Omit subsections (4) to (5) (obligation to surrender certificate following
cancellation of policy of insurance or security).

(5) 5Schedule 3 makes amendments in consequence of this section.

7 Shippers etc of gas

(1) In Part 1 of the Energy Act 2008 (gas importation and storage), after section 3
insert—

“3A Exception for unloading to an installation in certain circumstances

10The prohibition in section 2(1) does not apply to a person (“A”) who
uses a controlled place for the unloading of gas to an installation if—

(a) the installation is maintained by another person (“B”) who has
a licence in respect of the maintenance of the installation and the
use of a controlled place for the unloading of gas to it, and

(b) 15B consents to the use by A of the controlled place for the
unloading of gas to the installation.”

(2) In consequence of subsection (1), in section 2(2) of the 2008 Act, for “section 3”
substitute “sections 3 and 3A”.

8 Suppliers of fuel and fireplaces

(1) 20Part 3 of the Clean Air Act 1993 (smoke control areas) is amended as follows.

(2) In section 20 (offence of emitting smoke in smoke control area where emission
caused by use of fuel other than authorised fuel), after subsection (5) insert—

“(5ZA) In the application of this Part to England, “authorised fuel” means a
fuel included in a list of authorised fuels kept by the Secretary of State
25for the purposes of this Part.

(5ZB) The Secretary of State must—

(a) publish the list of authorised fuels, and

(b) publish a revised copy of the list as soon as is reasonably
practicable after any change is made to it.

(5ZC) 30The list must be published in such manner as the Secretary of State
considers appropriate.”

(3) In that section, in subsection (6) as it applies in relation to England and Wales
(definition of “authorised fuel”), for “In” substitute “Except as provided by
subsection (5ZA), in”.

(4) 35In section 21 (power by order to exempt certain fireplaces), at the beginning
insert—

“(A1) For the purposes of the application of this Part to England, the Secretary
of State may exempt any class of fireplace from the provisions of section
20 (prohibition of smoke emissions in smoke control area) if he is
40satisfied that such fireplaces can be used for burning fuel other than
authorised fuels without producing any smoke or a substantial
quantity of smoke.

(A2) An exemption under subsection (A1) may be made subject to such
conditions as the Secretary of State considers appropriate.

(A3) The Secretary of State must—

(a) publish a list of those classes of fireplace that are exempt under
5subsection (A1) including details of any conditions to which an
exemption is subject;

(b) publish a revised copy of the list as soon as is reasonably
practicable after any change is made to the classes of fireplace
that are so exempt or to the conditions to which an exemption is
10subject.

(A4) The list must be published in such manner as the Secretary of State
considers appropriate.”

(5) In that section as it applies in relation to England and Wales, the existing text
becomes subsection (5) and in that subsection, for “The” substitute “Except
15where subsection (A1) applies, the”.

(6) In the heading to that section, omit “by order”.

(7) In section 29 (interpretation of Part 3), in the definition of “authorised fuel”, for
“20(6)” substitute “20”.

9 Sellers of knitting yarn

(1) 20The Weights and Measures (Knitting Yarns) Order 1988 (S.I. 1988/895S.I. 1988/895)
(quantities in which yarn is to be sold) is revoked.

(2) In consequence of subsection (1), in the Weights and Measures (Specified
Quantities) (Pre-packed Products) Regulations 2009 (S.I. 2009/663S.I. 2009/663), omit
regulation 3.

25Companies and insolvency

10 Authorisation of insolvency practitioners

(1) Part 13 of the Insolvency Act 1986 (insolvency practitioners and their
qualification) is amended in accordance with subsections (2) to (4).

(2) In section 390 (persons not qualified to act as insolvency practitioners), for
30subsection (2) substitute—

“(2) A person is not qualified to act as an insolvency practitioner at any time
unless at that time the person is appropriately authorised under section
390A.”

(3) After section 390 insert—

“390A 35 Authorisation

(1) In this Part—

• “partial authorisation” means authorisation to act as an insolvency
  practitioner—

  (a)

  only in relation to companies, or

  (b)

  40only in relation to individuals;

Deregulation BillPage 6

• “full authorisation” means authorisation to act as an insolvency
  practitioner in relation to companies, individuals and insolvent
  partnerships;

• “partially authorised” and “fully authorised” are to be construed
  5accordingly.

(2) A person is fully authorised under this section to act as an insolvency
practitioner—

(a) by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency
10practitioner for all purposes by or under the rules of that body,
or

(b) by holding an authorisation granted by the Department of
Enterprise, Trade and Investment in Northern Ireland under
Article 352 of the Insolvency (Northern Ireland) Order 1989.

(3) 15A person is partially authorised under this section to act as an
insolvency practitioner—

(a) by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency
practitioner in relation only to companies or only to individuals
20by or under the rules of that body, or

(b) by virtue of being a member of a professional body recognised
under section 391(2) and being permitted to act as an insolvency
practitioner by or under the rules of that body.

390B Partial authorisation: acting in relation to partnerships

(1) 25A person who is partially authorised to act as an insolvency
practitioner in relation to companies may nonetheless not accept an
appointment to act in relation to a company if at the time of the
appointment the person is aware that the company —

(a) is or was a member of a partnership, and

(b) 30has outstanding liabilities in relation to the partnership.

(2) A person who is partially authorised to act as an insolvency
practitioner in relation to individuals may nonetheless not accept an
appointment to act in relation to an individual if at the time of the
appointment the person is aware that the individual—

(a) 35is or was a member of a partnership other than a Scottish
partnership, and

(b) has outstanding liabilities in relation to the partnership.

(3) Subject to subsection (9), a person who is partially authorised to act as
an insolvency practitioner in relation to companies may nonetheless
40not continue to act in relation to a company if the person becomes
aware that the company—

(a) is or was a member of a partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(4) 45Subject to subsection (9), a person who is partially authorised to act as
an insolvency practitioner in relation to individuals may nonetheless
not continue to act in relation to an individual if the person becomes
aware that the individual—

(a) is or was a member of a partnership other than a Scottish
partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(5) 5The court may grant a person permission to continue to act for the
purposes of subsection (3) or (4) if it is satisfied that the person is
competent to do so.

(6) A person who is partially authorised and becomes aware as mentioned
in subsection (3) or (4) may alternatively apply to the court for an order
10(a “replacement order”) appointing in his or her place a person who is
fully authorised to act as an insolvency practitioner in relation to the
company or (as the case may be) the individual.

(7) A person may apply to the court for permission to continue to act or for
a replacement order under—

(a) 15where acting in relation to a company, this section or, if it
applies, section 168(5B) (member of insolvent partnership:
England and Wales);

(b) where acting in relation to an individual, this section or, if it
applies, section 303(2C) (member of insolvent partnership:
20England and Wales).

(8) A person who acts as an insolvency practitioner in contravention of any
of subsections (1) to (4) is guilty of an offence under section 389 (acting
without qualification).

(9) A person does not contravene subsection (3) or (4) by continuing to act
25as an insolvency practitioner during the permitted period if, within the
period of 7 business days beginning with the day after the day on which
the person becomes aware as mentioned in the subsection, the person—

(a) applies to the court for permission to continue to act, or

(b) applies to the court for a replacement order.

(10) 30For the purposes of subsection (9)—

• “business day” means any day other than a Saturday, a Sunday,
  Christmas Day, Good Friday or a day which is a bank holiday
  in any part of Great Britain;

• “permitted period” means the period beginning with the day on
  35which the person became aware as mentioned in subsection (3)
  or (4) and ending on the earlier of—

  (a)

  the expiry of the period of 6 weeks beginning with the
  day on which the person applies to the court as
  mentioned in subsection (9)(a) or (b), and

  (b)

  40the day on which the court disposes of the application
  (by granting or refusing it);

• “replacement order” has the meaning given by subsection (6).”

(4) For section 391 (recognised professional bodies) substitute—

“391 Recognised professional bodies

(1) 45The Secretary of State may by order declare a body which appears to
the Secretary of State to meet the requirements of subsection (4) to be a
recognised professional body which is capable of providing its

insolvency specialist members with full authorisation or partial
authorisation.

(2) The Secretary of State may by order declare a body which appears to
the Secretary of State to meet the requirements of subsection (4) to be a
5recognised professional body which is capable of providing its
insolvency specialist members with partial authorisation only.

(3) An order under subsection (2) must state whether the partial
authorisation relates to companies or to individuals.

(4) The requirements are that the body—

(a) 10regulates the practice of a profession, and

(b) maintains and enforces rules for securing that its insolvency
specialist members—

(i) are fit and proper persons to act as insolvency
practitioners, and

(ii) 15meet acceptable requirements as to education and
practical training and experience.

(5) The Secretary of State may make an order revoking an order under
subsection (1) or (2) in relation to a professional body if it appears to the
Secretary of State that the body no longer meets the requirements of
20subsection (4).

(6) The Secretary of State may make an order revoking an order under
subsection (1) and replacing it with an order under subsection (2) in
relation to a professional body if it appears to the Secretary of State that
the body is capable of providing its insolvency specialist members with
25partial authorisation only.

(7) An order of the Secretary of State under this section has effect from such
date as is specified in the order.

(8) An order revoking an order made under subsection (1) or (2) may make
provision whereby members of the body in question continue to be
30treated as fully or partially authorised to act as insolvency practitioners
(as the case may be) for a specified period after the revocation takes
effect.

(9) In this section—

(a) references to members of a recognised professional body are to
35persons who, whether members of that body or not, are subject
to its rules in the practice of the profession in question (and the
references in section 390A to members of a recognised
professional body are to be read accordingly);

(b) references to insolvency specialist members of a professional
40body are to members who are permitted by or under the rules
of the body to act as insolvency practitioners.”

(5) In section 415A of the Insolvency Act 1986 (fees orders (general)), after
subsection (1) (fees for grant or maintenance of recognition of professional
body) insert—

“(1A) 45Fees under subsection (1) may vary according to whether the body is
recognised under section 391(1) (body providing full and partial

authorisation) or under section 391(2) (body providing partial
authorisation).”

(6) An order under section 391(1) of the Insolvency Act 1986 (recognised
professional bodies) made before the coming into force of this section is,
5following the coming into force of this section, to be treated as if it were made
under section 391(1) as substituted by subsection (4) of this section.

11 Auditors ceasing to hold office

(1) Chapter 4 of Part 16 of the Companies Act 2006 (audit: removal, resignation,
etc of auditors) is amended as follows.

(2) 10In section 519 (statement by auditor to be deposited with company on ceasing
to hold office), for subsections (1) to (3) substitute—

“(1) An auditor of a public interest company who is ceasing to hold office
(at any time and for any reason) must send to the company a statement
of the reasons for doing so.

(2) 15An auditor (“A”) of a non-public interest company who is ceasing to
hold office must send to the company a statement of the reasons for
doing so unless A satisfies the first or second condition.

(2A) The first condition is that A is ceasing to hold office—

(a) in the case of a private company, at the end of a period for
20appointing auditors;

(b) in the case of a public company, at the end of an accounts
meeting.

(2B) The second condition is that—

(a) A’s reasons for ceasing to hold office are all exempt reasons (as
25to which see section 519A(3)), and

(b) there are no matters connected with A’s ceasing to hold office
that A considers need to be brought to the attention of members
or creditors of the company.

(3) A statement under this section must include—

(a) 30the auditor’s name and address;

(b) the number allocated to the auditor on being entered in the
register of auditors kept under section 1239;

(c) the company’s name and registered number.

(3A) Where there are matters connected with an auditor’s ceasing to hold
35office that the auditor considers need to be brought to the attention of
members or creditors of the company, the statement under this section
must include details of those matters.

(3B) Where—

(a) an auditor (“A”) of a non-public interest company is required by
40subsection (2) to send a statement, and

(b) A considers that none of the reasons for A’s ceasing to hold
office, and no matters (if any) connected with A’s ceasing to
hold office, need to be brought to the attention of members or
creditors of the company,