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Notices of Amendments: 7 March 2018                     

8

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Stella Creasy

 

4

 

Clause  3,  page  3,  line  5,  at end insert—

 

“(c)    

advice to the Financial Conduct Authority on matters relating to high-

 

cost credit”

 

Crispin Blunt

 

41

 

Parliamentary Star    

Clause  3,  page  3,  line  16,  at end insert—

 

“(6A)    

As part of its money guidance function, the single financial guidance body must

 

make available financial guidance on the use of alternative sources of retirement

 

income, including housing wealth, to enable members of the public to make fully

 

informed decisions about pensions and retirement income.”

 

Member’s explanatory statement

 

This amendment would place a duty on the single financial guidance body to make available

 

guidance on alternative sources of retirement income, such as equity release. This will provide a

 

pathway for members of the public to consider their wider assets, particularly their housing

 

wealth, to make effective decisions about their retirement income.

 

Secretary Esther McVey

 

10

 

Clause  3,  page  3,  line  17,  leave out subsection (7) and insert—

 

“(7)    

The consumer protection function is—

 

(a)    

to notify the FCA where, in the exercise of its other functions, the single

 

financial guidance body becomes aware of practices carried out by FCA-

 

regulated persons (within the meaning of section 139A of the Financial

5

Services and Markets Act 2000) which it considers to be detrimental to

 

consumers, and

 

(b)    

to consider the effect of unsolicited direct marketing on consumers of

 

financial products and services, and, in particular—

 

(i)    

from time to time publish an assessment of whether unsolicited

10

direct marketing is, or may be, having a detrimental effect on

 

consumers, and

 

(ii)    

advise the Secretary of State whether to make regulations under

 

section (Unsolicited direct marketing: other consumer financial

 

products etc) (unsolicited direct marketing: other consumer

15

financial products etc).”

 

Member’s explanatory statement

 

This amendment makes changes to the consumer protection function to make it clearer exactly

 

what it entails.

 

As an Amendment to Secretary Esther McVey’s proposed Amendment (No. 10):—

 

Stephen Lloyd

 

(a)

 

Parliamentary Star    

Line  9,  leave out “from time to time” and insert “at least once every two years”

 

Stephen Lloyd

 

34

 

Parliamentary Star    

Clause  3,  page  3,  line  34,  at end insert—

 

“(aa)    

the capability of members of the public to plan for and address sudden

 

reductions in income,”


 
 

Notices of Amendments: 7 March 2018                     

9

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Gareth Thomas

 

Luciana Berger

 

Stella Creasy

 

Gareth Snell

 

Stephen Doughty

 

Liam Byrne

Frank Field

Lisa Nandy

Dan Jarvis

Clive Efford

Mr Paul Sweeney

Alex Sobel

Chris Evans

Anna Turley

Kate Green

David Hanson

Tracey Brabin

Mike Gapes

Lucy Powell

John Woodcock

 

1

 

Clause  3,  page  3,  line  39,  at end insert—

 

“(11)    

In carrying out its strategic and other functions the single financial guidance body

 

must make and publish an annual assessment of the level of different types of

 

lending across the United Kingdom by district.

 

(12)    

The types of lending covered by the assessment in subsection (11) should

 

include—

 

(a)    

high cost short term credit,

 

(b)    

hire purchase agreements,

 

(c)    

conditional sale agreements,

 

(d)    

open ended credit,

 

(e)    

other secured lending, and

 

(f)    

other unsecured lending.”

 

Member’s explanatory statement

 

This amendment requires the single financial guidance body to carry out an annual assessment of

 

the level of different types of lending in different geographical areas across the United Kingdom.

 


 

Secretary Esther McVey

 

11

 

Page  3,  line  40,  leave out Clause 4

 

Member’s explanatory statement

 

This amendment removes the clause on cold-calling (inserted by the Lords). NC3 and NC4 instead

 

provide a power for the Secretary of State to make regulations banning unsolicited direct

 

marketing relating to pensions and other consumer financial products and services.

 

Jack Dromey

 

Debbie Abrahams

 

Mike Amesbury

 

Vicky Foxcroft

 

Steve McCabe

 

8

 

Clause  4,  page  4,  line  2,  at end insert—

 

“(2A)    

The single financial guidance body must, within 12 months of the passing of this

 

Act, advise the Secretary of State on how to most effectively implement bans

 

on—

 

(a)    

cold-calling on behalf of, or for the benefit of companies carrying out

 

claims management services or their agents or representatives, and

 

(b)    

the commercial use of any data by companies carrying out claims

 

management services, their agents or representatives where they cannot


 
 

Notices of Amendments: 7 March 2018                     

10

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

demonstrate to the satisfaction of the Secretary of State that this data was

 

not obtained by cold-calling.

 

(2B)    

In this section “claims management services” has the same meaning as in section

 

419A of the Financial Services and Markets Act 2000.”

 

Member’s explanatory statement

 

This amendment will require the Secretary of State to specifically ban cold-calling and the

 

commercial use of data from cold-calling by claims management companies, in addition to any

 

bans recommended by the single financial guidance body.

 

Jack Dromey

 

Debbie Abrahams

 

Mike Amesbury

 

Vicky Foxcroft

 

Steve McCabe

 

9

 

Clause  4,  page  4,  line  4,  leave out “may” and insert “must”

 

Member’s explanatory statement

 

This amendment will place a statutory duty on the Secretary of State to institute bans on cold-

 

calling on receipt of advice to do so from the single financial guidance body.

 


 

Luciana Berger

 

Johnny Mercer

 

Norman Lamb

 

5

 

Clause  7,  page  5,  line  37,  at end insert—

 

“(ia)    

how it will specifically provide protections and help to

 

individuals in receipt of mental health crisis services, including

 

NHS mental health crisis services;

 

(ib)    

which other mental health treatment services should be

 

considered mental health crisis services for the purposes of this

 

Act.”

 

Jack Dromey

 

Debbie Abrahams

 

Mike Amesbury

 

Vicky Foxcroft

 

3

 

Clause  7,  page  5,  line  39,  at end insert—

 

“(iiia)    

the application of the scheme for duration of a person’s stay in

 

hospital or under the care of a crisis team in their local

 

community”

 

Member’s explanatory statement

 

This amendment will ensure that people who are staying in hospital or under the care of a crisis

 

team in their local community will be protected by the Debt Respite Scheme once it is established.

 



 
 

Notices of Amendments: 7 March 2018                     

11

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Jack Dromey

 

Debbie Abrahams

 

Mike Amesbury

 

Vicky Foxcroft

 

Yvonne Fovargue

 

30

 

Parliamentary Star - white    

Clause  8,  page  6,  line  15,  at end insert “and must do so before 1 January 2020.”

 

Member’s explanatory statement

 

This amendment commits the Secretary of State to implement a debt respite scheme by the end of

 

next year.

 

Luciana Berger

 

Johnny Mercer

 

Norman Lamb

 

6

 

Clause  8,  page  6,  line  16,  at end insert—

 

“(3A)    

A debt respite scheme established by regulations under this section must,

 

specifically, provide protection and help to individuals in receipt of mental health

 

crisis services as well as any other types of individual provided for by regulations

 

under this section.

 

(3B)    

The regulations must define which services should be considered “mental health

 

crisis services” for the purpose of this Act in addition to the definition in section

 

25 of this Act.

 

(3C)    

A debt respite scheme established by regulations under this section shall be

 

accessible to individuals in receipt of mental health crisis services irrespective of

 

whether those individuals have accessed debt advice.”

 


 

Secretary Esther McVey

 

12

 

Clause  18,  page  14,  line  17,  after “where” insert “—

 

(i)    

the disclosure is for the purpose of enabling or facilitating the

 

exercise of the consumer protection function, or

 

(ii)    

 

Member’s explanatory statement

 

This amendment is consequential upon Amendment 10, which makes changes to the consumer

 

protection function, including requiring the SFGB to pass information to the FCA in certain

 

circumstances. This amendment ensures that disclosure of information in these circumstances is

 

protected by subsection (7) of Clause 18.

 


 

Secretary Esther McVey

 

13

 

Clause  19,  page  14,  line  40,  leave out from beginning to end of line 8 on page 15

 

and insert—

 

“(1B)    

As part of the application process, the trustees or managers must ensure that—

 

(a)    

the member or survivor is referred to appropriate pensions guidance, and

 

(b)    

the member or survivor is provided with an explanation of the nature and

 

purpose of such guidance.


 
 

Notices of Amendments: 7 March 2018                     

12

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

(1C)    

Before proceeding with the application, the trustees or managers must ensure that

 

the member or survivor has either received appropriate pensions guidance or has

 

opted out of receiving such guidance.”

 

Member’s explanatory statement

 

This amendment will enable FCA rules to require trustees of a personal pension scheme who

 

receive an application from a member to access or transfer their pension to refer them to SFGB

 

guidance and explain its nature and purpose (or ensure that another person, such as the SFGB,

 

does so) and will prevent them from proceeding unless the member confirms that they have

 

received guidance or do not want it.

 

Frank Field

 

32

 

Parliamentary Star - white    

Clause  19,  page  14,  line  40,  leave out from beginning to end of line 8 on page 15

 

and insert—

 

“(1B)    

As part of the application process, the trustees or managers must ensure that—

 

(a)    

the member or survivor is referred to appropriate independent and

 

impartial pensions guidance, and

 

(b)    

the member or survivor is provided with an explanation of the nature and

 

purpose of such guidance.

 

“(1C)    

Before proceeding with the application, the trustees or managers must ensure that

 

the member or survivor has either received appropriate independent and impartial

 

pensions guidance or has indicated to the provider of appropriate independent and

 

impartial pensions guidance the desire to opt out of receiving such guidance.”

 

Member’s explanatory statement

 

This amendment will enable FCA rules to require trustees of a personal pension scheme who

 

receive an application from a member to access or transfer their pension to refer them to SFGB

 

guidance and explain its nature and purpose (or ensure that another person, such as the SFGB,

 

does so) and will prevent them from proceeding unless the member confirms that they have

 

received guidance or have indicated to the SFGB that they do not want it.

 

Secretary Esther McVey

 

14

 

Clause  19,  page  15,  line  10,  leave out from “guidance” to end of line 11

 

Member’s explanatory statement

 

This amendment (and Amendment 13) removes references to independent financial advice from

 

Clause 19, so that it refers only to pensions guidance given by the SFGB in pursuance of Clause 5

 

of the Bill.

 

Secretary Esther McVey

 

15

 

Clause  19,  page  15,  line  14,  at end insert—

 

“( )    

make further provision about how, and to whom, a member or survivor

 

may indicate that they have received or opted out of receiving appropriate

 

pensions guidance for the purposes of subsection (1C);”

 

Member’s explanatory statement

 

This amendment expressly envisages the rules making provision about how the opt-out (or

 

confirmation of receipt of guidance) mentioned in the new subsection (1C) inserted by Amendment

 

13 must be expressed in order to be effective.

 

Frank Field

 

33

 

Parliamentary Star - white    

Clause  19,  page  15,  line  14,  at end insert—

 

“(ba)    

make further provision about how and to whom, a member or survivor

 

may indicate that they have received appropriate independent and


 
 

Notices of Amendments: 7 March 2018                     

13

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

impartial pensions guidance, or have indicated to the provider of this

 

guidance that they wish to opt out, for the purposes of subsection (1C);”

 

Member’s explanatory statement

 

This amendment expressly envisages the rules making provision about how the opt-out (or

 

confirmation of receipt of guidance) mentioned in the new subsection (1C) inserted by Amendment

 

32 must be expressed in order to be effective.

 

Secretary Esther McVey

 

16

 

Clause  19,  page  15,  leave out line 17 and insert “communication that is made for the

 

purposes of complying with the duty in subsection (1C)”

 

Member’s explanatory statement

 

This amendment is consequential on the changes to the duties on trustees made by Amendment 13.

 


 

Secretary Esther McVey

 

17

 

Clause  20,  page  16,  line  10,  leave out from beginning to end of line 23 and insert—

 

“(2)    

As part of the application process, the trustees or managers must ensure that—

 

(a)    

the beneficiary is referred to appropriate pensions guidance, and

 

(b)    

the beneficiary is provided with an explanation of the nature and purpose

 

of such guidance.

 

(3)    

Before proceeding with the application, the trustees or managers must ensure that

 

the beneficiary has either received appropriate pensions guidance or has opted out

 

of receiving such guidance.”

 

Member’s explanatory statement

 

This amendment makes equivalent changes to Clause 20(2), which relates to occupational pension

 

schemes in Great Britain, to the changes made by Amendment 13 for personal pension schemes.

 

Frank Field

 

35

 

Parliamentary Star    

Clause  20,  page  16,  line  10,  leave out from beginning to end of line 23 and insert—

 

“(2)    

As part of the application process, the trustees or managers must ensure that—

 

(a)    

the beneficiary is referred to appropriate independent and impartial

 

pensions guidance, and

 

(b)    

the beneficiary is provided with an explanation of the nature and purpose

 

of such guidance.

 

(3)    

Before proceeding with the application, the trustees or managers must ensure that

 

the beneficiary has either received appropriate independent and impartial

 

pensions guidance or has indicated to the provider of appropriate independent and

 

impartial pensions guidance the desire to opt out of receiving such guidance.”

 

Member’s explanatory statement

 

This amendment makes equivalent changes to Clause 20(2), which relates to occupational pension

 

schemes in Great Britain, to the changes made by Amendment 32 for personal pension schemes.

 

Secretary Esther McVey

 

18

 

Clause  20,  page  16,  line  25,  leave out from “guidance” to end of line 26

 

Member’s explanatory statement

 

This amendment is the equivalent to Amendment 14 for occupational pension schemes in Great

 

Britain.


 
 

Notices of Amendments: 7 March 2018                     

14

 

Financial Guidance and Claims Bill-[Lords], continued

 
 

Secretary Esther McVey

 

19

 

Clause  20,  page  16,  line  29,  at end insert—

 

“( )    

make further provision about how, and to whom, a beneficiary may

 

indicate that they have received or opted out of receiving appropriate

 

pensions guidance for the purposes of subsection (3);”

 

Member’s explanatory statement

 

This amendment is the equivalent to Amendment 15 for occupational pension schemes in Great

 

Britain.

 

Frank Field

 

36

 

Parliamentary Star    

Clause  20,  page  16,  line  29,  at end insert—

 

“( )    

make further provision about how, and to whom, a beneficiary may indicate that

 

they have received appropriate independent and impartial pensions guidance, or

 

have indicated to the provider of this guidance that they wish to opt out, for the

 

purposes of subsection (3)

 

Member’s explanatory statement

 

  This amendment is the equivalent to Amendment 33 for occupational pension schemes in Great

 

Britain.

 

Secretary Esther McVey

 

20

 

Clause  20,  page  16,  line  31,  leave out from second “a” to end of line 32 and insert

 

“communication that is made for the purposes of complying with the duty in subsection

 

(3)”

 

Member’s explanatory statement

 

This amendment is the equivalent to Amendment 16 for occupational pension schemes in Great

 

Britain.

 

Secretary Esther McVey

 

21

 

Clause  20,  page  17,  line  27,  leave out from beginning to end of line 40 and insert—

 

“(2)    

As part of the application process, the trustees or managers must ensure that—

 

(a)    

the beneficiary is referred to appropriate pensions guidance, and

 

(b)    

the beneficiary is provided with an explanation of the nature and purpose

 

of such guidance.

 

(3)    

Before proceeding with the application, the trustees or managers must ensure that

 

the beneficiary has either received appropriate pensions guidance or has opted out

 

of receiving such guidance.”

 

Member’s explanatory statement

 

This amendment makes equivalent changes to Amendments 13 and 17 for occupational pension

 

schemes in Northern Ireland.

 

Secretary Esther McVey

 

22

 

Clause  20,  page  17,  line  42,  leave out from “guidance” to end of line 43

 

Member’s explanatory statement

 

This amendment is the equivalent to Amendments 14 and 18 for occupational pension schemes in

 

Northern Ireland.


 
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Revised 07 March 2018