Pension Schemes Bill (HC Bill 114)

(3) 30In 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;

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

  • “pension scheme” has the meaning given by section 150(1) of
    the Finance Act 2004.

Pension Schemes BillPage 44

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) 5The 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) 10The 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) 15the 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
20listed 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) 25The 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) 30The 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.

35(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
40subsection (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.

Pension Schemes BillPage 45

(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 Designation of providers of pensions guidance

(1) 5In 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
10Bureaux, 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
15must—

(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) 20The 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)
25to—

(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
30subsection (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
35under 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
40indicating) 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.

Pension Schemes BillPage 46

(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.

(4) A person guilty of an offence under this section is liable on summary
5conviction—

(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,
10or 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
15Criminal 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
20reference 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
25pensions 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
30statutory 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
35standards.

(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
40modifications in the second column.

Pension Schemes BillPage 47

Procedural provisions
of this Act
Additional modifications
Sections 138G and
138H
Treat the references to a rule-
making instrument as
5references to a standard-
making instrument.
Section 138I

Treat—

(a)

subsection (1)(a) as if it
10were omitted;

(b)

subsection (2)(d) as if it
referred to an
explanation of the
FCA’s reasons for
15believing that setting
the proposed standards
would secure an
appropriate degree of
protection for recipients
20of pensions guidance
from designated
guidance providers.


Section 138L Treat the reference in
25subsection (1) to consumers (as
defined in section 425A) as a
reference to recipients of
pensions guidance from
designated guidance providers.

333H 30Monitoring 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) 35Sections 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) 40section 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) 45Section 177 applies as if a requirement imposed by virtue of
subsection (2) were a requirement imposed under Part 11.

Pension Schemes BillPage 48

(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:
5FCA 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—

(a) recommend steps that the designated guidance provider
might take to prevent the continuance or recurrence of the
10failure 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) 15would 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 20FCA 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) 25If 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
30in 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:
35procedure

(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
40attention 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.

Pension Schemes BillPage 49

(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) 5If 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.

(6) The FCA may charge a reasonable fee for providing a person with a
10copy 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
15failed 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) 20The 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) 25give 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) 30Once 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
35guidance 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
40only 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.