Session 2014 - 15
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Public Bill Committee:                               

176

 

, continued

 
 

(9)    

The Tgraphicreasury 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

 

degraphicsignated 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

 

sectigraphicon 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

 

givigraphicng 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).”

 

3          

In section graphic1B (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)).”

 

4          

After section 137FA insert—

 

“137FB 

FCA general rules: disclosure of information about the availability

 

of pengraphicsions 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

 

bengraphicefits.

 

(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 degraphictermining 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 othgraphicer 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 Fgraphicinance Act 2004;

 

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

 

20A;


 
 

Public Bill Committee:                               

177

 

, continued

 
 

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

 

with permission under this Act to establish—

 

(a)    

a pgraphicersonal pension scheme within the meaning of an order under

 

section 22, or

 

(b)    

a stakeholder pension scheme within the meaning of such an

 

order.”

 

5          

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

 

(a)    

in graphicsubsection (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)    

segraphicction 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)    

graphic.

 

6          

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

 

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

 

these functions).”

 

7          

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)    

aftegraphicr sub-paragraph (iv) insert—

 

“(v)    

standards set under section 333G;

 

(vi)    

statement issued by the FCA under 333J;”.

 

8          

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

 

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

 

9          

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

 

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

 

substitute “, 262, 333C or 333Q”.

 

10         

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

 

functions)—

 

(a)    

in sgraphicub-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-pargraphicagraph (4), after “section 139B(5)” insert “or 333O(9)”.

 

11         

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,”.

 

12         

In that Schedugraphicle, in paragraph 23 (fees)—

 

(a)    

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

 

“other than sections 333P and 333Q”;


 
 

Public Bill Committee:                               

178

 

, continued

 
 

(b)    

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

 

excepted functions,”;

 

(c)    

in subgraphic-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 fungraphicctions under section 333Q so far as relating

 

to the collection of payments.”

 

13         

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 pgraphicaragraph (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.”

 

14  (1)  

For thgraphice 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 1graphic37FB 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

 
  

appgraphiclied 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 FgraphicSMA

 
 

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)  

graphicWhere 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

 

accompagraphicnied 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


 
 

Public Bill Committee:                               

179

 

, continued

 
 

an appropriate degree of protection for recipients of pensions

 

guidagraphicnce 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

 

138graphicI 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 graphicin 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

 

availabilgraphicity 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 Trgraphiceasury.

 

      (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;

 

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

 

15         

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.

 

As Amendments to Steve Webb’s proposed New Schedule (NS2):—

 

Nigel Mills

 

(a)

 

Line  21,  after “Treasury’s”, insert “and the Department for Work and Pensions’”

 

Nigel Mills

 

(b)

 

Line  22,  after “Treasury”, insert “and the Department for Work and Pensions”

 

Nigel Mills

 

(c)

 

Line  24,  after “Treasury”, insert “and the Department for Work and Pensions”


 
 

Public Bill Committee:                               

180

 

, continued

 
 

Nigel Mills

 

(d)

 

Line  36,  after “(3)”, insert “subject to the condition in subsection (3A)”

 

Nigel Mills

 

(e)

 

Line  38,  at end insert—

 

“(3A)    

The following people may not give pension guidance—

 

(a)    

persons set out in section 154(1) of the Finance Act 2004;

 

(b)    

persons whose main business is the operation or management of pension

 

schemes;

 

(c)    

persons whose main business is the provision of products or other

 

arrangements that provide or are capable of providing income for persons

 

in retirement;

 

(3B)    

A person shall not be excluded by subsection (3A) solely for the reason of

 

providing a Pension Scheme for the employees of that Person.”

 

Nigel Mills

 

(f)

 

Line  72,  after “(e)”, insert “Subject to the condition in subsection (1A)”

 

Nigel Mills

 

(g)

 

Line  74,  at end insert—

 

“(1A)    

The following persons may not be designated under section (1)(e)—

 

(a)    

persons set out in section 154(1) of the Finance Act 2004;

 

(b)    

persons whose main business is the operation or management of Pension

 

Schemes;

 

(c)    

persons whose main business is the provision of products or other

 

arrangements that provide or are capable of providing income for persons

 

in retirement;

 

(1B)    

A person shall not be excluded by subsection (1A) solely for the reason of

 

providing a Pension Scheme for the employees of that person.”

 

Nigel Mills

 

(h)

 

Line  129,  at end insert—

 

“(1A)    

The standards in subsection (1) must include—

 

(a)    

a guidance session provided by a designated guidance provider should in

 

general be planned to have a duration of at least 30 minutes;

 

(b)    

individuals in receipt of guidance should be provided with joining

 

instructions at least 14 days prior to the guidance session which sets out

 

the information needed to make the session effective, including the

 

preparation by the individual of a statement of their financial affairs and

 

sources of income in retirement.”

 


 
 

Public Bill Committee:                               

181

 

, continued

 
 

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

 

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.

 

 

Order of the Committee [21 October 2014]

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 8.55 a.m. on Tuesday

 

21 October) meet—

 

(a)  

at 2.00 pm on Tuesday 21 October;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 23 October;

 

(c)  

at 9.25 am and 2.00 pm on Tuesday 28 October;

 

(d)  

at 11.30 am and 2.00 pm on Thursday 30 October;

 

(e)  

at 9.25 am and 2.00 pm on Tuesday 4 November;

 

(f)  

at 11.30 am and 2.00 pm on Thursday 6 November;

 

(2)  

the Committee shall hear oral evidence in accordance with the following

 

Table:

 

TABLE

 

Date

Time

Witness

 
 

Tuesday 21

Until no later than

The Pensions Regulator

 
 

October

9.30 am

  
 

Tuesday 21 October

Until no later than

Pension Protection Fund;

 
  

10.15 am

Financial Conduct Authority

 
 

Tuesday 21 October

Until no later than

Pensions Advisory Service;

 
  

11.00 am

Money Advice Service

 
 

Tuesday 21 October

Until no later than

Royal Society of Arts;

 
  

3.00 pm

Cardano; First Actuarial;

 
   

KPMG

 
 

Tuesday 21 October

Until no later than

Aon Hewitt; Financial

 
  

4.00 pm

Services Consumer Panel;

 
   

Confederation of British

 
   

Industry

 
 

Thursday 23

Until no later than

Mr Dominic Lindley; Which?;

 
 

October

12.15 pm

Trades Union Congress

 
 

Thursday 23

Until no later than

Pensions Policy Institute;

 
 

October

1.00 pm

Dr Ros Altmann; Age UK

 
 

Thursday 23

Until no later than

Association of British

 
 

October

3.00 pm

Insurers; Dr Debbie Harrison;

 
   

National Association of

 
   

Pension Funds

 
 

Thursday 23

Until no later than

Mr John Greenwood;

 
 

October

4.00 pm

Strategic Society Centre;

 
   

Towers Watson

 
 

Thursday 23

Until no later than

Department for Work and

 
 

October

4.45 pm

Pensions

 

 
 

Public Bill Committee:                               

182

 

, continued

 
 

(3)  

proceedings on consideration of the Bill in Committee shall be taken in the

 

following order: Clauses 1 to 8; Schedule 1; Clauses 9 to 12; Schedule 2;

 

Clause 13; Schedule 3; Clauses 15 to 37; Schedule 4; Clauses 38 to 45;

 

Clause 14; new Clauses; new Schedules; remaining proceedings on the Bill;

 

(4)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 5.00 p.m. on Thursday 6 November.

 


 
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