House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

125

House of Commons

Notices of Amendments

given on

Thursday 23 October 2014

For other Amendment(s) see the following page(s):

Pension Schemes Bill Committee 85-123

Public Bill Committee

Pension Schemes Bill

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 Guidance

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 the 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;

“money 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.

Notices of Amendments:
126

, continued

Giving 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)
seek 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

accordance with arrangements made with the Treasury.

(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)
the 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

Association 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)
Regulations 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)
the 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 2007.)

(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)
may 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.

Notices of Amendments:
127

, continued

Designation of guidance providers

333E
Designation 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)
the 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.

(2)
Before 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 Treasury 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)
The 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

consider 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 is 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

indicates (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 proceedings 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.

Notices of Amendments:
128

, continued

(4)
A person guilty of an offence under this section is liable on summary

conviction—

(a)
in 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 Northern 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

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

(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.

Standards 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 failure 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

138D.

(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

those 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

Sections 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

were omitted;

(b)
subsection (2)(d) as if it

referred to an explanation

of the FCA’s reasons for

believing that setting the

proposed standards would

secure an appropriate

degree of protection for

recipients of pensions

guidance from designated

guidance providers.

Section 138L
Treat the reference in subsection

(1) to consumers (as defined in

section 425A) as a reference to

recipients of pensions guidance

from designated guidance

providers.

Notices of Amendments:
129

, continued

333H
Monitoring of compliance with standards by designated guidance

providers

(1)
The FCA must maintain arrangements for monitoring compliance by

designated 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

person 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)
Section 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

include 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

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

Notices of Amendments:
130

, continued

(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

Treasury 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 the 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 the 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)
The FCA may issue a statement under this section only with the

consent of the Treasury.

(5)
A statement issued under this section must be published by the FCA

in the way appearing to the FCA to be best calculated to bring it to the

attention of the public.

(6)
The FCA may charge a reasonable fee for providing a person with a

copy of the statement.

333K
FCA policy on making recommendations under section 333I:

procedure

(1)
Before issuing a statement under section 333J, the FCA must—

(a)
consult the Treasury, and

(b)
publish a draft of the proposed statement in the way appearing

to the FCA to be best calculated to bring it to the attention of

the public.

(2)
The draft must be accompanied by notice that representations about

the proposal may be made to the FCA within a specified time.

(3)
Before issuing the proposed statement, the FCA must have regard to

any representations made to it within the specified time.

(4)
If the FCA issues the proposed statement it must publish an account,

in general terms, of—

(a)
the representations made to it within the specified time, and

(b)
its response to them.

(5)
If the statement differs from the draft published under subsection

(1)(b) in a way which is, in the opinion of the FCA, significant, the

FCA must (in addition to complying with subsection (4)) publish

details of the difference.

Notices of Amendments:
131

, continued

(6)
The FCA may charge a reasonable fee for providing a person with a

copy of a draft published under subsection (1)(b).

(7)
This section also applies to a proposal to alter or replace a statement.

333L
Failure by designated guidance providers to comply with standards:

Treasury directions

(1)
If the Treasury consider that a designated guidance provider has failed

to comply with a standard set under section 333G the Treasury may

direct the provider to take such steps as the Treasury consider

appropriate—

(a)
to prevent the continuance or recurrence of the failure;

(b)
to make redress to those affected by the failure.

(2)
The Treasury may give a direction under subsection (1) only if the

FCA has made a recommendation under section 333I(1)(b) (although

the terms of the direction need not be the same as that recommended

by the FCA).

(3)
The Treasury must—

(a)
give notice in writing of a direction under subsection (1), and

(b)
send a copy of the notice to the FCA.

(4)
The notice must inform the designated guidance provider that

representations about why the direction should not be published may

be made to the Treasury within a specified time.

(5)
Once the time specified under subsection (4) has elapsed, the Treasury

must publish the direction unless—

(a)
the Treasury consider that to do so would be against the public

interest;

(b)
having considered representations made by the designated

guidance provider within the specified time, the Treasury

consider that it would be inappropriate to do so for some other

reason.

(6)
If the condition in subsection (5)(a) or (b) is satisfied in relation to a

direction but would not be satisfied if the Treasury published part only

of the direction, the Treasury may publish that part.

(7)
A direction under subsection (1) is enforceable, on an application

made by the Treasury, by injunction or, in Scotland, by an order for

specific performance under section 45 of the Court of Session Act

1988.

333M
Directions to designated guidance providers under section 333L:

relationship with power to revoke a designation

(1)
The power conferred by section 333L(1) is exercisable in addition to,

or instead of, the power conferred by section 333E(3) to revoke a

designation.

(2)
If the power in section 333E(3) is exercised before the power in

section 333L(1) the reference in section 333L(1) to a designated

guidance provider is to be read as a reference to a person who, at the

time of the failure to comply, was a designated guidance provider.



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