House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

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(9)
The Treasury must pay into the Consolidated Fund the amounts

received by them under subsection (8).

(10)
In this section the “Treasury’s pensions guidance costs” means the

expenses incurred, or expected to be incurred, by the Treasury—

(a)
in giving pensions guidance or arranging for it to be given by

designated guidance providers,

(b)
in meeting the expenses of designated guidance providers

incurred in connection with the giving of the guidance

(including expenses incurred by virtue of sections 333G(2),

333L and 333P), whether by means of the power conferred by

section 333D or otherwise,

(c)
in providing services to designated guidance providers to

support them in giving the guidance,

(d)
in increasing awareness of the availability of the guidance,

(e)
in undertaking or commissioning research relating to the

giving of the guidance, and

(f)
otherwise in connection with the carrying out of its functions

under section 333B.

(11)
The Treasury may by regulations amend the definition of the

“Treasury’s pensions guidance costs” in subsection (10).”

10
In section 1B (the FCA’s general duties), after subsection (7) insert—

“(7A)
The FCA’s general functions do not include its general pensions

guidance functions (see section 333N(3)).”

11
After section 137FA insert—

“137FB
FCA general rules: disclosure of information about the availability

of pensions guidance

(1)
The FCA must make general rules requiring information about the

availability of pensions guidance to be given by the trustees or

managers of a relevant pension scheme to members of the scheme with

a right or entitlement to cash balance benefits or other money purchase

benefits.

(2)
Before the FCA publishes a draft of any rules to be made by virtue of

this section, it must consult—

(a)
the Secretary of State, and

(b)
the Treasury.

(3)
In determining what provision to include in the rules, the FCA must

have regard to any regulations that are for the time being in force under

section 113 of the Pension Schemes Act 1993 concerning the giving

of information about the availability of pensions guidance to members

of pension schemes with a right or entitlement to cash balance benefits

or other money purchase benefits.

(4)
In this section—

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

Finance Act 2004;

“money purchase benefits” has the meaning given by section 152(4) of

the Finance Act 2004;

“pensions guidance” means pensions guidance given by virtue of Part

20A;

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“relevant pension scheme” means a pension scheme set up by a person

with permission under this Act to establish—

(a)
a personal pension scheme within the meaning of an order under

section 22, or

(b)
a stakeholder pension scheme within the meaning of such an

order.”

12
In section 138I (rules: consultation by the FCA)—

(a)
in subsection (6) (exemption from requirement to carry out a cost

benefit analysis), after paragraph (a) insert—

“(aa)
section 137FB;”;

(b)
in that subsection, after paragraph (c) insert—

“(ca)
section 333P;

(cb)
section 333Q;”;

(c)
in subsection (10) (rules to which requirement to consult the PRA does

not apply), after “apply to” insert “—

(a)
rules made by the FCA under section 137FB, 333P or

333Q, or

(b)
”.

13
In section 139A (power of the FCA to give guidance), after subsection (1)

insert—

“(1A)
The FCA may not give guidance under this section relating to its

functions under sections 333G, 333H, 333I, 333J and 333P (see

section 333O for provision about the giving of guidance relating to

these functions).”

14
In section 140A (competition scrutiny: interpretation), in subsection (1), in

paragraph (a) of the definition of “regulating provisions”—

(a)
in sub-paragraph (ii), after “section 139B(5)” insert “or 333O(9)”;

(b)
after sub-paragraph (iv) insert—

“(v)
standards set under section 333G;

(vi)
statement issued by the FCA under 333J;”.

15
In section 168 (appointment of persons to carry out investigations in particular

cases), in subsection (2)(a), after “section 24(1)” insert “or 333F”.

16
In section 429 (Parliamentary control of statutory instruments), in subsection

(2) (regulations subject to the affirmative resolution procedure), for “or 262”

substitute “, 262, 333C or 333Q”.

17
In Schedule 1ZA (the FCA), in paragraph 8 (arrangements for discharging

functions)—

(a)
in sub-paragraph (3) (legislative functions that must be exercised by

the FCA acting through its governing body), in paragraph (c)(i), for

“or 312J” substitute “, 312J or 333J”;

(b)
in sub-paragraph (3), after paragraph (d) insert—

“(e)
setting standards under section 333G.”

(c)
in sub-paragraph (4), after “section 139B(5)” insert “or 333O(9)”.

18
In that Schedule, in paragraph 11 (annual report), in sub-paragraph (1) (matters

to be covered in the report), after paragraph (ha) insert—

“(hb)
how, in its opinion, it has complied with its duties in section

333N,”.

19
In that Schedule, in paragraph 23 (fees)—

(a)
in sub-paragraph (1), in the opening words, after “of this Act” insert

“other than sections 333P and 333Q”;

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(b)
in sub-paragraph (1)(a), after “functions” insert “, other than its

excepted functions,”;

(c)
in sub-paragraph (2)(a), after “(ca)” insert “but not its excepted

functions”;

(d)
after sub-paragraph (2) insert—

“(2ZA)
The “excepted functions” of the FCA are—

(a)
its functions under sections 333E to 333P, and

(b)
its functions under section 333Q so far as relating

to the collection of payments.”

20
In section 85 of the Financial Services Act 2012 (relevant functions in relation

to scheme for investigating complaints against FCA and other regulators), in

subsection (4) (legislative functions of the FCA that are excluded)—

(a)
in paragraph (c)(i), for “or 312J” substitute “, 312J or 333J”;

(b)
in paragraph (e), after “139B(5)” insert “or 333O(9)”;

(c)
after paragraph (e) insert—

“(f)
setting standards under section 333G of FSMA

2000.”

21  (1)
For the purpose of the exercise of a function conferred by a provision listed in

the first column of the table, a consultation requirement listed in the

corresponding entry in the second column may be satisfied by things done

before the day on which this Act is passed.

Provision conferring function
Consultation requirement

Section 137FB of FSMA
Sections 137FB(2) and

138I(1) of FSMA

Section 333E(1)(e) of FSMA
Section 333E(2) of FSMA

Section 333G(1) of FSMA
Section 138I(1) of FSMA as

applied with modifications by

section 333G(5) of FSMA

Section 333J(1) of FSMA
Section 333K(1) of FSMA

Section 333O(1) of FSMA
Section 138(1)(b) of FSMA

as applied by section 333O(3)

of FSMA

Section 333P(1) of FSMA
Sections 138I(1) and 333P(2)

of FSMA.

Section 333Q(2) of FSMA
Sections 138I(1) and 333Q(4)

of FSMA

      (2)
Where before the day on which this Act is passed the Financial Conduct

Authority publishes a draft of proposed standards for the giving of pensions

guidance by designated guidance providers—

(a)
the consultation requirement in section 138I of FSMA may be treated

as satisfied by virtue of sub-paragraph (1) even if the draft is not

accompanied by—

(i)
a cost benefit analysis, or

(ii)
an explanation of the Financial Conduct Authority’s reasons

for believing that setting the proposed standards would secure

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an appropriate degree of protection for recipients of pensions

guidance from designated guidance providers, and

(b)
if it is, any resulting standards published under section 138G(4) of

FSMA must be accompanied by—

(i)
a cost benefit analysis within the meaning of section 138I of

that Act even if the conditions in subsection (5) of section

138I are not satisfied, and

(ii)
an explanation of the Financial Conduct Authority’s reasons

for believing that setting the standards will secure an

appropriate degree of protection for recipients of pensions

guidance from designated guidance providers.

      (3)
References in sub-paragraph (2) to provisions of sections 138G and 138I of

FSMA are to those provisions as applied with modifications by section

333G(5) of that Act.

      (4)
Where before the day on which this Act is passed the Financial Conduct

Authority publishes a draft of proposed rules requiring information about the

availability of pensions guidance to be given by the trustees or managers of a

relevant pension scheme to members of the scheme with a right or entitlement

to cash balance benefits or other money purchase benefits, the consultation

requirement in section 137FB(2) of FSMA may be treated as satisfied by virtue

of sub-paragraph (1) even if the only consultation before publication was with

the Treasury.

      (5)
In this paragraph—

“consultation requirement” includes—

(e)
a requirement to publish a draft;

(f)
a requirement under section 333E(2)(b) or (c) of FSMA;

“FSMA” means the Financial Services and Markets Act 2000.

22
Expenses incurred by the Financial Conduct Authority before the day on which

this Act is passed in anticipation of the conferral of functions on it by virtue of

the amendments made by this Schedule are to be treated as if they had been

incurred on or after that day.”

Member’s explanatory statement

The Schedule inserted by this amendment sets out the legislative framework for the giving of

pensions guidance to pension scheme members with a right or entitlement to cash balance benefits

or other money purchase benefits by inserting a new Part 20A into the Financial Services and

Markets Act 2000 and making consequential amendments.

Order of the House [2 September 2014]

That the following provisions shall apply to the the Pension Schemes Bill:—

Commital

1.
The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.
Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Thursday 6 November 2014.

3.
The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.
Proceedings on Consideration shall (so far as not previously concluded) be

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brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.
Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption of that day.

6.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Other Proceedings

7.
Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or any further message from the Lords)

may be programmed.



© Parliamentary copyright	Revised 21 October 2014