Session 2017-19
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1

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Thursday 25 January 2018

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Amendments tabled since the last publication: 1 to 22 and NC1 to NC6

 

Public Bill Committee


 

Financial Guidance and Claims Bill [Lords]


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

Guy Opperman

 

1

 

Parliamentary Star    

Clause  1,  page  2,  line  6,  at end insert “and the devolved authorities.”

 

Member’s explanatory statement

 

This amendment, together with amendment 18, will enable transfer schemes under Schedule 2 to

 

transfer staff, property, rights and liabilities from the consumer financial education body to the

 

devolved authorities. This may be necessary in view of the fact that the devolved authorities will

 

be responsible for the provision of debt advice in their areas (see clause 15).

 


 

Guy Opperman

 

2

 

Parliamentary Star    

Clause  5,  page  4,  line  13,  leave out subsection (2)

 

Member’s explanatory statement

 

This amendment removes subsection (2) of clause 5 (inserted by the Lords), which required the

 

FCA to make rules requiring trustees or managers of personal and stakeholder pension schemes


 
 

Notices of Amendments: 25 January 2018                  

2

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

to ask whether members have received guidance before accessing or transferring their pension.

 

This duty is developed in the new clauses inserted by NC1 and NC2.

 


 

Guy Opperman

 

3

 

Parliamentary Star    

Clause  24,  page  17,  line  21,  at end insert—

 

“( )    

In section 1H (interpretation provisions for FCA’s objectives)—

 

(a)    

in subsection (2), at the end of paragraph (c) insert “or to engage in claims

 

management activity”;

 

(b)    

in subsection (8), at the appropriate place insert—

 

““engage in claims management activity” has the meaning

 

given in section 21;”.”

 

Member’s explanatory statement

 

The result of this amendment of the Financial Services and Markets Act 2000 would be that

 

references in the FCA’s statutory objectives to “regulated financial services” include services

 

provided by authorised persons in communicating, or approving the communication by others of,

 

invitations to engage in claims management activity.

 

Guy Opperman

 

4

 

Parliamentary Star    

Clause  24,  page  18,  line  7,  at end insert—

 

“( )    

In section 137R (financial promotion rules)—

 

(a)    

in subsection (1), omit the “or” at the end of paragraph (a) and after that

 

paragraph insert—

 

“(aa)    

to engage in claims management activity, or”;

 

(b)    

in subsection (6), for “has” substitute “and “engage in claims

 

management activity” have”.”

 

Member’s explanatory statement

 

The result of this amendment of the Financial Services and Markets Act 2000 would be that the

 

FCA may make rules about the communication, or the approval of another person’s

 

communications, by authorised persons of invitations or inducements to engage in claims

 

management activity.

 


 

Guy Opperman

 

5

 

Parliamentary Star    

Clause  26,  page  21,  line  17,  leave out “and 28” and insert “to (PPI claims: interim

 

restriction on charges imposed by legal practitioners after transfer of regulation to

 

FCA)”

 

Member’s explanatory statement

 

This amendment would apply the explanation of terms given in clause 26 to the new clause inserted

 

by NC3.


 
 

Notices of Amendments: 25 January 2018                  

3

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Guy Opperman

 

6

 

Parliamentary Star    

Clause  26,  page  22,  line  11,  at end insert “, and

 

(c)    

so far as relevant for the purposes of section (PPI claims: interim

 

restriction on charges imposed by legal practitioners after transfer of

 

regulation to FCA), to be read as referring to any service which is a

 

relevant claims management activity (within the meaning given by

 

subsection (5) of that section).”

 

Member’s explanatory statement

 

This amendment would define what references to “regulated services” in clause 26 mean when

 

relevant for the purposes of the new clause inserted by NC3.

 


 

Guy Opperman

 

7

 

Parliamentary Star    

Clause  29,  page  25,  line  32,  leave out from beginning to “extends” and insert “Part

 

1, other than the provisions mentioned in subsections (2) to (3B),”

 

Member’s explanatory statement

 

This amendment makes a minor drafting change, restructuring the extent clause, in consequence

 

of the changes to that clause made by Amendment 8 and the amendments relating to Part 2.

 

Guy Opperman

 

8

 

Parliamentary Star    

Clause  29,  page  25,  line  37,  at end insert—

 

“(3A)    

In section (Occupational pension schemes: requirements to recommend guidance

 

etc)—

 

(a)    

subsections (1) to (5) extend to England and Wales and Scotland;

 

(b)    

subsections (6) to (9) extend to Northern Ireland.

 

(3B)    

Paragraph 25 of Schedule 3 extends to England and Wales and Scotland.”

 

Member’s explanatory statement

 

New subsection (3A) updates the extent clause so that the amendments to the Pensions Schemes

 

Act 1993 in NC2 extend only to England and Wales and Scotland and the amendments to the

 

Pension Schemes (Northern Ireland) Act 1993 extend only to Northern Ireland. New subsection

 

(3B) contains text previously in subsection (6) in consequence of restructuring this clause.

 

Guy Opperman

 

9

 

Parliamentary Star    

Clause  29,  page  25,  line  38,  leave out subsections (4) and (5) and insert—

 

“(4)    

Part 2, other than the provisions mentioned in subsections (5) and (5A), extends

 

to England and Wales and Scotland.

 

(5)    

The following provisions extend to England and Wales—

 

(a)    

section 24(12) and Schedule 4;

 

(b)    

section 27;

 

(c)    

section (PPI claims: interim restriction on charges imposed by legal

 

practitioners after transfer of regulation to FCA).

 

(5A)    

Section (Cold calling about claims management services) extends to England and

 

Wales, Scotland and Northern Ireland.”

 

Member’s explanatory statement

 

This amends the extent clause, so that the new clause inserted by NC3 extends to England and

 

Wales only, and the new clause inserted by NC6 extends to England and Wales, Scotland and

 

Northern Ireland.


 
 

Notices of Amendments: 25 January 2018                  

4

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Guy Opperman

 

10

 

Parliamentary Star    

Clause  29,  page  25,  line  42,  leave out subsection (6) and insert—

 

“( )    

This Part extends to England and Wales, Scotland and Northern Ireland.”

 

Member’s explanatory statement

 

This amendment contains a minor drafting change consequential upon the restructuring of the

 

extent clause.

 


 

Guy Opperman

 

11

 

Parliamentary Star    

Clause  30,  page  26,  line  13,  at end insert—

 

“(1A)    

Subsections (6) to (9) of section (Occupational pension schemes: requirements to

 

recommend guidance etc) come into force on a day appointed by order made by

 

the Department for Communities in Northern Ireland.

 

(1B)    

An order under subsection (1A) may make—

 

(a)    

transitional, transitory and saving provision in connection with the

 

coming into force of any provision in section (Occupational pension

 

schemes: requirements to recommend guidance etc)(6) to (9);

 

(b)    

incidental and supplementary provision, and

 

(c)    

different provision for different purposes,

 

    

and the power to make such an order is exercisable by statutory rule for the

 

purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573

 

(N.I. 12)).”

 

Member’s explanatory statement

 

This amendment gives the power to bring into force the provisions amending the Pension Schemes

 

(Northern Ireland) Act 1993 in the new clause inserted by NC2 to the Department for Communities

 

in Northern Ireland.

 

Guy Opperman

 

12

 

Parliamentary Star    

Clause  30,  page  26,  line  14,  leave out “28” and insert “(PPI claims: interim

 

restriction on charges imposed by legal practitioners after transfer of regulation to

 

FCA)”

 

Member’s explanatory statement

 

This amends the commencement clause, so that the new clause inserted by NC3 comes into force

 

2 months after Royal Assent.

 

Guy Opperman

 

13

 

Parliamentary Star    

Clause  30,  page  26,  line  21,  at end insert “except section (Occupational pension

 

schemes: requirements to recommend guidance etc) (6) to (9)”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 11.

 

Guy Opperman

 

14

 

Parliamentary Star    

Clause  30,  page  26,  line  29,  at end insert “, and

 

(ii)    

section (Cold calling about claims management services)”

 

Member’s explanatory statement

 

This amends the commencement clause to provide for NC6 about cold calling in relation to claims


 
 

Notices of Amendments: 25 January 2018                  

5

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

management services to be brought into force on a day appointed in regulations made by the

 

Secretary of State.

 

Guy Opperman

 

15

 

Parliamentary Star    

Clause  30,  page  26,  line  31,  at end insert “, other than section (Cold calling about

 

claims management services)”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 14.

 

Guy Opperman

 

16

 

Parliamentary Star    

Clause  30,  page  26,  line  31,  at end insert—

 

“( )    

The Treasury must obtain the consent of the Lord Chancellor before making

 

regulations under subsection (3) or (5) in relation to section (Legal services

 

regulators’ rules: charges for claims management services).”

 

Member’s explanatory statement

 

This amendment requires the Treasury to obtain the consent of the Lord Chancellor before making

 

regulations for the commencement of the new clause inserted by amendment NC4.

 


 

Guy Opperman

 

17

 

Parliamentary Star    

Clause  31,  page  26,  line  34,  leave out subsection (2)

 

Member’s explanatory statement

 

This amendment removes the privilege amendment inserted by the Lords.

 


 

Guy Opperman

 

NC1

 

Parliamentary Star    

To move the following Clause—

 

         

“Personal pension schemes: requirements to recommend guidance etc

 

(1)    

Section 137FB of the Financial Services and Markets Act 2000 (FCA general

 

rules: disclosure of information about the availability of pensions guidance) is

 

amended as follows.

 

(2)    

After subsection (1), insert—

 

“(1A)    

The FCA must also make general rules requiring the trustees or managers

 

of a relevant pension scheme to take the steps mentioned in subsections

 

(1B) and (1C) in relation to an application from a member or survivor—

 

(a)    

to transfer any rights accrued under the scheme, or

 

(b)    

to start receiving benefits provided by the scheme.

 

(1B)    

As part of the application process, the trustees or managers must ask the

 

member or survivor whether they have received appropriate pensions

 

guidance or appropriate independent financial advice.


 
 

Notices of Amendments: 25 January 2018                  

6

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

(1C)    

In a case where the member or survivor indicates that they have not

 

received appropriate pensions guidance or appropriate independent

 

financial advice, the trustees or managers must also—

 

(a)    

recommend that the member or survivor seeks such guidance or

 

advice, and

 

(b)    

ask the member or survivor whether—

 

(i)    

they wish to wait until they have received such guidance

 

or advice before deciding whether to proceed with the

 

application, or

 

(ii)    

they wish to proceed with the application without having

 

received it.

 

(1D)    

The rules may—

 

(a)    

specify what constitutes appropriate pensions guidance and

 

appropriate independent financial advice;

 

(b)    

make further provision about how the trustees or managers must

 

comply with the duties in subsections (1B) and (1C) (such as

 

provision about methods of communication and time limits);

 

(c)    

specify what the duties of the trustees or managers are in the

 

situation where a member or survivor does not respond to a

 

question mentioned in subsection (1B) or (1C)(b);

 

(d)    

provide for exceptions to the duties in subsections (1B) and (1C)

 

in specified cases.”

 

(3)    

In subsection (2), for “this section” substitute “subsection (1)”.

 

(4)    

After subsection (2) insert—

 

“(2A)    

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

 

subsection (1A), it must consult—

 

(a)    

the Secretary of State, and

 

(b)    

the single financial guidance body.”

 

(5)    

In subsection (3), for “the rules” substitute “rules to be made by virtue of

 

subsection (1)”.

 

(6)    

After subsection (3) insert—

 

“(3A)    

In determining what provision to include in rules to be made by virtue of

 

subsection (1A), the FCA must have regard to any regulations that are for

 

the time being in force under section 113B of the Pension Schemes Act

 

1993 (occupational pension schemes: requirements to recommend

 

guidance etc).”

 

(7)    

In subsection (4), for the definition of “pensions guidance” substitute—

 

““pensions guidance” means information or guidance provided by any

 

person in pursuance of the requirements mentioned in section 5 of the

 

Financial Guidance and Claims Act 2018 (information etc about flexible

 

benefits under pension schemes);”.”

 

Member’s explanatory statement

 

This new clause requires the FCA to make rules requiring trustees or managers of personal and

 

stakeholder pension schemes to check whether members have either received guidance or advice

 

or have opted out of receiving it before accessing or transferring their pension assets. It also makes

 

consequential amendments to FSMA 2000. It would be inserted after clause 18.

 

 



 
 

Notices of Amendments: 25 January 2018                  

7

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Guy Opperman

 

NC2

 

Parliamentary Star    

To move the following Clause—

 

         

“Occupational pension schemes: requirements to recommend guidance etc

 

(1)    

The Pension Schemes Act 1993 is amended as set out in subsections (2) to (5).

 

(2)    

After section 113A insert—

 

“113B

Occupational pension schemes: requirements to recommend guidance

 

etc

 

(1)    

The Secretary of State must make regulations requiring the trustees or

 

managers of an occupational pension scheme to take the steps mentioned

 

in subsections (2) and (3) in relation to an application from a relevant

 

beneficiary—

 

(a)    

to transfer any rights accrued under the scheme, or

 

(b)    

to start receiving benefits provided by the scheme.

 

(2)    

As part of the application process, the trustees or managers must ask the

 

beneficiary whether they have received appropriate pensions guidance or

 

appropriate independent financial advice.

 

(3)    

In a case where the beneficiary indicates that they have not received

 

appropriate pensions guidance or appropriate independent financial

 

advice, the trustees or managers must also—

 

(a)    

recommend that the beneficiary seeks such guidance or advice,

 

and

 

(b)    

ask the beneficiary whether—

 

(i)    

they wish to wait until they have received such guidance

 

or advice before deciding whether to proceed with the

 

application, or

 

(ii)    

they wish to proceed with the application without having

 

received it.

 

(4)    

The regulations may—

 

(a)    

specify what constitutes appropriate pensions guidance and

 

appropriate independent financial advice;

 

(b)    

make further provision about how the trustees or managers must

 

comply with the duties in subsections (2) and (3) (such as

 

provision about methods of communication and time limits);

 

(c)    

specify what the duties of the trustees or managers are in the

 

situation where a beneficiary does not respond to a question

 

mentioned in subsection (2) or (3)(b);

 

(d)    

provide for exceptions to the duties in subsections (2) and (3) in

 

specified cases;

 

(e)    

provide for the Secretary of State or another prescribed person to

 

issue guidance for the purposes of this section, to which trustees

 

or managers must have regard in complying with their duties

 

under the regulations.

 

(5)    

In determining what provision to include in the regulations, the Secretary

 

of State must have regard to any rules that are for the time being in force

 

under section 137FB(1A) of the Financial Services and Markets Act

 

2000.


 
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Revised 25 January 2018