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Public Bill Committee:                               

220

 

, continued

 
 

Gregg McClymont

 

NC14

 

To move the following Clause—

 

“Fiduciary duty of trustees

 

(1)    

The Secretary of State may by regulations—

 

(a)    

require any pension scheme, which is not already overseen by

 

independent trustees, to appoint a board of independent trustees; and

 

(b)    

set out the powers and dutues of a board appointed under subsection

 

(1)(a).

 

(2)    

Regulations under this section—

 

(a)    

shall be made by statutory instrument, and

 

(b)    

may not be made unless a draft has been laid before and approved by

 

resolution of each House of Parliament.

 

(3)    

The board of independent trustees shall have a fiduciary duty towards members

 

of the scheme overseen by them.

 

(4)    

The fiduciary duty set out in subsection (3) shall take precedence over any duty

 

to—

 

(a)    

the shareholders in, or

 

(b)    

other owners of,

 

    

the operators of the scheme.

 

(5)    

In relation to any matters of member interest, decisions of the board of

 

independent trustees shall be binding on the board of directors or other analagous

 

bodies.”.

 

 

Gregg McClymont

 

nc15

 

To move the following Clause—

 

“Decumulation

 

(1)    

A qualifying money purchase scheme may not sell annuities directly to anyone

 

who has saved with the scheme unless this is the recommendation of an

 

independent annuity broker. A relevant scheme may provide an independent

 

brokerage service itself. A self-provided annuity brokerage service will be

 

considered independent for the purposes of this Act if the provision of its services

 

is subject to the direction of independent trustees.

 

(2)    

Pension schemes shall ensure that any brokerage service selected or provided

 

meets best practice in terms of providing members with—

 

(a)    

an assisted path through the annuity process;

 

(b)    

ensuring access to most annuity providers; and

 

(c)    

minimising costs.

 

(3)    

The standards meeting best practice for annuity brokerage services shall be

 

defined by the Pensions Regulator after public consultation.

 

(4)    

The standards set out in subsection (3) shall be reviewed every three years and, if

 

required, updated.”.

 

 
 

Public Bill Committee:                               

221

 

, continued

 
 

New ScheduleS

 

Steve Webb

 

NS1

 

To move the following Schedule—

 

“Amendments to do with section (Pension Scheme for Fee-Paid Judges)

 

Pensions (Increase) Act 1971 (c. 56)

 

1          

The Pensions (Increase) Act 1971 is amended as follows.

 

2          

In section 19(2)(a) (extent to Northern Ireland)—

 

(a)    

after “or section” insert “18A or”, and

 

(b)    

after “section 10 of that Act” insert “or provision made under section

 

18A of that Act that is corresponding or similar to the provision that

 

may be made by regulations under section 10 of that Act”.

 

3          

In Schedule 2 (official pensions), after paragraph 4A insert—

 

“4AA      

A pension payable under a scheme made under section 18A of the

 

Judicial Pensions and Retirement Act 1993, other than a pension

 

payable under or by virtue of provision that is corresponding or

 

similar to the provision that may be made by regulations under

 

section 10 of that Act.”

 

Judicial Pensions and Retirement Act 1993 (c. 8)

 

4          

The Judicial Pensions and Retirement Act 1993 is amended as follows.

 

5          

In section 22 (application of the Pensions (Increase) Act 1971 to Northern

 

Ireland), in subsection (2)—

 

(a)    

after “shall include” insert “—

 

(a)    

”;

 

(b)    

at the end insert “; and

 

(b)    

pensions payable under a scheme made under section

 

18A above, other than pensions payable under or by

 

virtue of provision that is corresponding or similar to

 

the provision that may be made by regulations under

 

section 10 above.”

 

6    (1)  

Section 28 (funding arrangements) is amended as follows.,

 

      (2)  

In subsection (2) (benefits payable out of money provided by Parliament), after

 

paragraph (a) (but before the “and” at the end) insert—

 

“(aa)    

any pension or other benefits payable under a scheme made

 

under section 18A above;”.

 

      (3)  

In subsection (7), for “section 10 above” substitute “—

 

(a)    

section 10 above, or

 

(b)    

provision made under section 18A above that is

 

corresponding or similar to the provision that may be made by

 

regulations under section 10 above.”

 
 

Public Bill Committee:                               

222

 

, continued

 
 

7          

In section 28A (contributions in respect of Northern Ireland judges), at the end

 

insert “or as a fee-paid judge in Northern Ireland (within the meaning given by

 

section 18A)”.”

 

Member’s explanatory statement

 

These amendments in this new Schedule relate to the pension scheme for fee-paid judges - see NC3.

 

Among other things, they deal with inflation increases.

 

 

Steve Webb

 

NS2

 

To move the following Schedule—

 

“Pensions Guidance

 

1          

The Financial Services and Markets Act 2000 is amended as follows.

 

2          

After section 333 insert—

 

“Part 20A

 

Pensions Guidancegraphic

 

333A  

Introduction and definitions

 

(1)    

This Part is about the giving of pensions guidance.

 

(2)    

“Pensions guidance” means guidance given for the purpose of helping

 

a member of a pension scheme to make decisions about what to do

 

with tgraphiche cash balance benefits or other money purchase benefits that

 

may be provided to the member.

 

(3)    

In this Part—

 

“cash balance benefits” has the meaning given by section 152(5) of

 

the Finance Act 2004;

 

“mongraphicey purchase benefits” has the meaning given by section

 

152(4) of the Finance Act 2004;

 

“pensions guidance” has the meaning given by subsection (2);

 

“pension scheme” has the meaning given by section 150(1) of the

 

Finance Act 2004.

 

Givgraphicing of pensions guidance

 

333B  

Treasury’s role in relation to pensions guidance

 

(1)    

The Treasury must take such steps as they consider appropriate to

 

ensure that people have access to pensions guidance.

 

(2)    

The Treasury may—

 

(a)    

sgraphiceek to increase awareness of the availability of the guidance;

 

(b)    

undertake or commission research relating to the giving of the

 

guidance.

 

333C  

Giving of pensions guidance

 

(1)    

The bodies listed in subsection (2) are to give pensions guidance in

 

accorgraphicdance with arrangements made with the Treasury.

 
 

Public Bill Committee:                               

223

 

, continued

 
 

(2)    

Those bodies are—

 

(a)    

the Pensions Advisory Service Limited;

 

(b)    

the National Association of Citizens Advice Bureaux;

 

(c)    

the Scottish Association of Citizens Advice Bureaux;

 

(d)    

thegraphic Northern Ireland Association of Citizens Advice Bureaux.

 

(3)    

The bodies listed in subsection (2) may give pensions guidance by

 

arranging for it to be given by another person (including another listed

 

body).

 

(4)    

The National Association of Citizens Advice Bureaux, the Scottish

 

Assgraphicociation of Citizens Advice Bureaux and the Northern Ireland

 

Association of Citizens Advice Bureaux may jointly carry out their

 

functions of giving pensions guidance.

 

(5)    

The Treasury may by regulations repeal one or more of paragraphs (a)

 

to (d) of subsection (2).

 

(6)    

Regraphicgulations under subsection (5) may make consequential

 

amendments of this Act.

 

333D  

Financial assistance to bodies involved in giving pensions guidance

 

(1)    

The Treasury may make grants or loans or give any other form of

 

financial assistance to—

 

(a)    

thegraphic Pensions Advisory Service Limited;

 

(b)    

the Northern Ireland Association of Citizens Advice Bureaux.

 

    

(For the power to make grants to the National Association of Citizens

 

Advice Bureaux and the Scottish Association of Citizens Advice

 

Bureaux see section 40A of the Consumers, Estate Agents and Redress

 

Act 2graphic007.)

 

(2)    

Any grant, loan or other form of financial assistance under subsection

 

(1)—

 

(a)    

is to be made or given for the purpose of enabling the body to

 

carry out its functions under section 333C(1), and

 

(b)    

magraphicy be made or given subject to such other terms as the

 

Treasury consider appropriate.

 

(3)    

Any expenses incurred by the Treasury under this section are to be met

 

out of money provided by Parliament.

 

Designation of guidance providers

 

333E  

Desgraphicignation of providers of pensions guidance

 

(1)    

In this Part “designated guidance provider” means—

 

(a)    

the Pensions Advisory Service Limited,

 

(b)    

the National Association of Citizens Advice Bureaux,

 

(c)    

the Scottish Association of Citizens Advice Bureaux,

 

(d)    

thgraphice Northern Ireland Association of Citizens Advice Bureaux,

 

or

 

(e)    

a person designated by the Treasury as someone who must, in

 

giving pensions guidance, comply with standards set by the

 

FCA under section 333G.

 
 

Public Bill Committee:                               

224

 

, continued

 
 

(2)    

Begraphicfore designating a person under subsection (1)(e), the Treasury

 

must—

 

(a)    

consult the FCA,

 

(b)    

notify the person to be designated, and

 

(c)    

consider any representations made.

 

(3)    

The Tgraphicreasury may revoke a designation under subsection (1)(e).

 

(4)    

The Treasury must give notice in writing of a designation under

 

subsection (1)(e) or the revocation of a designation under subsection

 

(3) to the person designated or (as the case may be) the person whose

 

designation has been revoked.

 

(5)    

Tgraphiche Treasury must send a copy of a notice given under subsection (4)

 

to—

 

(a)    

all other designated guidance providers, and

 

(b)    

the FCA.

 

(6)    

The Treasury must from time to time publish, in such manner as they

 

congraphicsider appropriate, a list of the persons who are designated under

 

subsection (1)(e).

 

False claims when giving pensions guidance

 

333F  

Offence of falsely claiming to be giving pensions guidance under

 

Treasury arrangements

 

(1)    

It graphicis an offence for a person who is not giving pensions guidance under

 

arrangements made with the Treasury—

 

(a)    

to describe himself (in whatever terms) as a person who is

 

doing so, or

 

(b)    

to behave, or otherwise hold himself out, in a manner which

 

indgraphicicates (or which is reasonably likely to be understood as

 

indicating) that he is doing so.

 

(2)    

For the purposes of subsection (1), pensions guidance given by a

 

designated guidance provider is given under arrangements made with

 

the Treasury.

 

(3)    

In graphicproceedings for an offence under this section it is a defence for the

 

accused to show that the accused took all reasonable precautions and

 

exercised all due diligence to avoid committing the offence.

 

(4)    

A person guilty of an offence under this section is liable on summary

 

conviction—

 

(a)    

ingraphic England and Wales, to imprisonment for a term not

 

exceeding 51 weeks or a fine, or both;

 

(b)    

in Scotland, to imprisonment for a term not exceeding 12

 

months or a fine not exceeding level 5 on the standard scale,

 

or both;

 

(c)    

in graphicNorthern Ireland, to imprisonment for a term not exceeding

 

6 months or a fine not exceeding level 5 on the standard scale,

 

or both.

 

(5)    

In relation to an offence committed before section 281(5) of the

 

Criminal Justice Act 2003 comes into force, the reference in

 

subsgraphicection (4)(a) to 51 weeks is to be read as a reference to 6 months.

 
 

Public Bill Committee:                               

225

 

, continued

 
 

(6)    

In relation to an offence committed before section 85(1) of the Legal

 

Aid, Sentencing and Punishment of Offenders Act 2012 comes into

 

force, the reference in subsection (4)(a) to a fine is to be read as a

 

reference to a fine not exceeding level 5 on the standard scale.

 

Standgraphicards for giving of pensions guidance by designated guidance providers

 

333G  

Standards for giving of pensions guidance by designated guidance

 

providers

 

(1)    

The FCA must from time to time set standards for the giving of

 

pensions guidance by designated guidance providers.

 

(2)    

A fgraphicailure by a designated guidance provider to comply with a standard

 

set under this section is actionable at the suit of a private person who

 

suffers loss as a result of the failure, subject to the defences and other

 

incidents applying to actions for breach of statutory duty.

 

(3)    

In subsection (2) “private person” has the same meaning as in section

 

13graphic8D.

 

(4)    

Standards set under this section may provide for subsection (2) not to

 

apply to a failure to comply with a specified provision of the standards.

 

(5)    

The procedural provisions of this Act in the first column of the table

 

apply to the setting of standards under this section as if references in

 

thographicse provisions to the making of rules (however expressed) were

 

references to the setting of standards and with the additional

 

modifications in the second column.

 

Procedural provisions

Additional modifications

 
 

of this Act

  
 

Sectgraphicions 138G and

Treat the references to a rule-

 
 

138H

making instrument as references to

 
  

a standard-making instrument.

 
 

Section 138I

Treat—

 
  

(a)    

subsection (1)(a) as if it

 
  

wegraphicre omitted;

 
  

(b)    

subsection (2)(d) as if it

 
  

referred to an explanation

 
  

of the FCA’s reasons for

 
  

believing that setting the

 
  

prgraphicoposed standards would

 
  

secure an appropriate

 
  

degree of protection for

 
  

recipients of pensions

 
  

guidance from designated

 
  

guigraphicdance providers.

 
 

Section 138L

Treat the reference in subsection

 
  

(1) to consumers (as defined in

 
  

section 425A) as a reference to

 
  

recipients of pensions guidance

 
  

frographicm designated guidance

 
  

providers.

 
 
 

Public Bill Committee:                               

226

 

, continued

 
 

333H  

Monitoring of compliance with standards by designated guidance

 

providers

 

(1)    

The FCA must maintain arrangements for monitoring compliance by

 

degraphicsignated guidance providers with the standards set under section

 

333G.

 

(2)    

Sections 165 and 167 apply for the purpose of enabling the FCA to

 

monitor compliance but as if—

 

(a)    

references to an authorised person or a former authorised

 

pegraphicrson were references to a designated guidance provider or a

 

former designated guidance provider;

 

(b)    

section 165(7)(b) to (d) were omitted;

 

(c)    

the reference in section 167(5A)(b) to the FCA or the PRA

 

were a reference to the FCA.

 

(3)    

Sectgraphicion 175 applies as if a power that the FCA or an investigator has

 

by virtue of subsection (2) were a power under Part 11.

 

(4)    

Section 177 applies as if a requirement imposed by virtue of

 

subsection (2) were a requirement imposed under Part 11.

 

(5)    

References in a provision of Part 11 to section 165, 167, 175 or 177

 

inclgraphicude the relevant section as applied with modifications by this

 

section.  

 

333I  

Failure by designated guidance providers to comply with standards:

 

FCA recommendations

 

(1)    

If the FCA considers that a designated guidance provider has failed to

 

comgraphicply with a standard set under section 333G the FCA may—

 

(a)    

recommend steps that the designated guidance provider might

 

take to prevent the continuance or recurrence of the failure or

 

to make redress to those affected by the failure, and

 

(b)    

having made such a recommendation, recommend that the

 

Tregraphicasury give a direction under section 333L.

 

(2)    

The FCA must publish a recommendation made under subsection

 

(1)(b) unless the FCA considers that to do so—

 

(a)    

would be against the public interest, or

 

(b)    

would be inappropriate for some other reason.

 

(3)    

If thgraphice condition in subsection (2)(a) or (b) is satisfied in relation to a

 

recommendation but would not be satisfied if the FCA published part

 

only of the recommendation, the FCA may publish that part.

 

333J  

FCA policy on making recommendations under section 333I

 

(1)    

The FCA must prepare and issue a statement of its policy with respect

 

to tgraphiche making of recommendations under section 333I.

 

(2)    

The FCA may at any time alter or replace a statement issued under this

 

section.

 

(3)    

If a statement issued under this section is altered or replaced, the FCA

 

must issue the altered or replaced statement.

 

(4)    

Thegraphic FCA may issue a statement under this section only with the

 

consent of the Treasury.

 
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