Session 2017-19
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Other Bills before Parliament


 
 

 

LORDS AMENDMENTS TO THE

Tenant Fees Bill

[The page and line references are to HL Bill 129, the bill as first printed for the Lords]

Clause 1

1

Page 2, line 10, leave out “the person” and insert “a relevant person”

 

2

Page 2, line 19, leave out “the person” and insert “a relevant person”

 

3

Page 2, line 38, at beginning insert “subject to subsection (10),”

 

4

Page 2, line 39, at end insert—

 

“(10)    

The reference in subsection (9)(b) to a person does not include—

 

(a)    

a local housing authority within the meaning of the Housing Act

 

1985 (see section 1 of that Act),

 

(b)    

the Greater London Authority, or

 

(c)    

a person acting on behalf of an authority within paragraph (a) or the

 

Greater London Authority.”

Clause 2

5

Page 2, line 46, at end insert “the agent or”

 

6

Page 3, line 14, leave out “the person” and insert “a relevant person”

 

7

Page 3, line 20, leave out “the person” and insert “a relevant person”

 
 

Bill 316                                                                                                        

57/1 

 

 


 
 

2

 
 

8

Page 3, line 23, leave out “person’s”

Clause 4

9

Page 4, line 21, leave out “the tenant” and insert “a relevant person”

 

10

Page 4, line 23, leave out “tenant” and insert “relevant person”

 

11

Page 4, line 24, leave out “the tenant” and insert “a relevant person”

 

12

Page 4, line 25, leave out “tenant” and insert “relevant person”

Clause 8

13

Page 6, line 13, after “of” insert “paragraph 3 of”

Clause 10

14

Page 7, line 33, after “breaching” insert “paragraph 3 of”

Clause 11

15

Page 8, line 13, leave out “date” and insert “day”

 

16

Page 8, line 14, leave out “date” and insert “day”

 

17

Page 8, line 17, leave out “date” and insert “day”

 

18

Page 8, line 18, leave out “date” and insert “day”

 

 

19

Page 8, line 23, after “10(8)” insert “—

 

(i)    

in a case within paragraph 4 of Schedule 2”

 

 
 

 


 
 

3

20

Page 8, line 25, leave out “paragraph 4 of Schedule 2” and insert “that paragraph, or

 

(ii)    

in a case within paragraph 4A of that Schedule, the day after

 

the end of the relevant period within the meaning of that

 

paragraph.”

Clause 21

21

Page 14, line 24, leave out from beginning to “subsection” in line 26 and insert—

 

    

“The Housing and Planning Act 2016 is amended as follows.

 

( )    

In section 134 (client money protection schemes: approval or designation),

 

after subsection (2) insert—

 

“(3)    

Regulations under this section may confer a discretion on the

 

Secretary of State in connection with—

 

(a)    

the approval or designation of a client money protection

 

scheme,

 

(b)    

conditions which must be complied with by the

 

administrator of such a scheme,

 

(c)    

the amendment of such a scheme, or

 

(d)    

the withdrawal of approval or revocation of designation of

 

such a scheme.”

 

( )    

In section 135 (enforcement of client money protection scheme

 

regulations)—

 

(a)    

in”

After Clause 21

22

Insert the following new Clause—

 

“Client money protection schemes: approval and designation

 

(1)    

The Client Money Protection Schemes for Property Agents (Approval and

 

Designation of Schemes) Regulations 2018 (S.I. 2018/751) are amended as

 

follows.

 

(2)    

In regulation 2 (interpretation), in the definition of “client money”—

 

(a)    

in paragraph (a), for “agency”, in the second place it occurs,

 

substitute “management”, and

 

(b)    

at the end of paragraph (b) insert “,

 

    

but does not include money held in accordance with an authorised

 

tenancy deposit scheme within the meaning of Chapter 4 of Part 6

 

of the Housing Act 2004 (see section 212 of that Act);”.

 

(3)    

In regulation 4 (amendments to an approved scheme), after paragraph (3),

 

insert—

 

“(4)    

This regulation does not apply to an amendment made in

 

accordance with a notice service served under regulation 8(1D)(b).”

 
 

 


 
 

4

 
 

(4)    

In regulation 5 (conditions which must be satisfied before approval may be

 

given)—

 

(a)    

in paragraph (1)(a)(iii), for “and without any deduction” substitute

 

“, subject to paragraph (1A)”,

 

(b)    

in paragraph (1)(c)(i), for “administration of the scheme” substitute

 

“failure of scheme members to account for client money to persons

 

entitled to that money”,

 

(c)    

after paragraph (1) insert—

 

“(1A)    

The Secretary of State may determine that the condition in

 

paragraph (1)(a)(iii) is satisfied where the rules of the

 

scheme have the effect that the scheme administrator is

 

required to make good M’s liability—

 

(a)    

only up to such amount as the Secretary of State

 

considers appropriate,

 

(b)    

only if or to the extent that M’s liability can be made

 

good without exceeding such aggregate limit on the

 

liability of the scheme as a whole as the Secretary of

 

State considers appropriate, or

 

(c)    

only if M’s liability arises in relation to a risk that the

 

Secretary of State considers it is appropriate for the

 

scheme to insure against.”, and

 

(d)    

after paragraph (2) insert—

 

“(2A)    

The rules of the scheme are to be treated as complying with

 

paragraph (2)(f) if they provide that, until 1 April 2020, they

 

have effect as if they required scheme members to make all

 

reasonable efforts to hold client money in a client money

 

account with a bank or building society authorised by the

 

Financial Conduct Authority.”

 

(5)    

In regulation 8 (conditions with which scheme administrators must

 

comply)—

 

(a)    

in paragraph (1), after “practicable” insert “—

 

(a)    

after that member joins the scheme, and

 

(b)    

after the scheme rules are amended under

 

paragraph (1D)(a) or in accordance with a notice

 

served under paragraph (1D)(b).”,

 

(b)    

after paragraph (1) insert—

 

“(1A)    

Paragraphs (1B) to (1E) apply if the rules of the scheme have

 

the effect of requiring the scheme administrator to make

 

good the liability of a scheme member—

 

(a)    

only up to a certain amount,

 

(b)    

only within an aggregate limit on the liability of the

 

scheme as a whole, or

 

(c)    

only in relation to certain risks.

 

(1B)    

The certificate provided under paragraph (1) must

 

include—

 

(a)    

information about the amount referred to in

 

paragraph (1A)(a),

 

(b)    

information about the limit referred to in paragraph

 

(1A)(b), or

 
 

 


 
 

5

 
 

(c)    

details of where to find information about the risks

 

referred to in paragraph (1A)(c),

 

    

as the case may be.

 

(1C)    

Paragraphs (1D) and (1E) apply if the Secretary of State

 

considers that—

 

(a)    

the amount referred to in paragraph (1A)(a) is no

 

longer appropriate,

 

(b)    

the limit referred to in paragraph (1A)(b) is no

 

longer appropriate,

 

(c)    

it is no longer appropriate for the rules of the scheme

 

to exclude liability in relation to one or more of the

 

risks referred to in paragraph (1A)(c), or

 

(d)    

it is appropriate for the rules of the scheme to

 

exclude liability in relation to one or more risks that

 

are not among the risks referred to in paragraph

 

(1A)(c).

 

(1D)    

The Secretary of State may—

 

(a)    

where the Secretary of State is the scheme

 

administrator, amend the scheme rules with the

 

effect that the amount, the limit or the risks are

 

replaced with such different amount, limit or risks

 

(as the case may be) as the Secretary of State

 

considers appropriate;

 

(b)    

in any other case, serve a notice on the scheme

 

administrator requiring that person to amend the

 

scheme rules with the effect that the amount, the

 

limit or the risks are replaced with such different

 

amount, limit or risks (as the case may be) as the

 

Secretary of State considers appropriate.

 

(1E)    

The scheme administrator must comply with a notice

 

served under paragraph (1D)(b)—

 

(a)    

within the period of 30 days beginning with the day

 

on which the notice is served, or

 

(b)    

within such longer period beginning with that day

 

as the Secretary of State may specify in the notice.”,

 

(c)    

after paragraph (3) insert—

 

“(3A)    

The scheme administrator must maintain insurance that—

 

(a)    

covers any foreseeable liability which may arise in

 

connection with the failure of scheme members to

 

account for client money to persons entitled to that

 

money, and

 

(b)    

is appropriate with regard to the size and number of

 

scheme members and the amount of client money

 

held by scheme members.

 

(3B)    

Before renewing the scheme’s insurance, the scheme

 

administrator must obtain the approval of the Secretary of

 

State to the type and amount of insurance.

 
 

 


 
 

6

 
 

(3C)    

The Secretary of State may approve the renewal of the

 

scheme’s insurance only if the Secretary of State is satisfied

 

that, if the insurance is renewed as proposed, the scheme

 

administrator will continue to comply with paragraph

 

(3A).”,

 

(d)    

in paragraph (5), at the end of sub-paragraph (a) for “; and”

 

substitute “,

 

(aa)    

where paragraph (1B) applies—

 

(i)    

information about the amount referred to in

 

paragraph (1A)(a),

 

(ii)    

information about the limit referred to in

 

paragraph (1A)(b), or

 

(iii)    

information about the risks referred to in

 

paragraph (1A)(c),

 

    

as the case may be, and”, and

 

(e)    

after paragraph (6) insert—

 

“(7)    

In this regulation, references to renewing a scheme’s

 

insurance (however expressed) include obtaining new

 

insurance.

 

(8)    

Paragraphs (2), (3B), (3C) and (4) do not apply where the

 

Secretary of State is the scheme administrator.”

 

(6)    

The amendments made by this section are without prejudice to any power

 

to make an order or regulations amending or revoking the regulations

 

mentioned in subsection (1).”

 

23

Insert the following new Clause—

 

“Client money protection schemes: requirement to belong to a scheme etc

 

(1)    

The Client Money Protection Schemes for Property Agents (Requirement

 

to Belong to a Scheme etc.) Regulations 2019 are amended as follows.

 

(2)    

In regulation 2 (interpretation)—

 

(a)    

in the definition of “client money”—

 

(i)    

in paragraph (a), for “agency”, in the second place it occurs,

 

substitute “management”, and

 

(ii)    

at the end of paragraph (b), for “; and” substitute “,

 

    

but does not include money held in accordance with an

 

authorised tenancy deposit scheme within the meaning of

 

Chapter 4 of Part 6 of the Housing Act 2004 (see section 212

 

of that Act);”, and

 

(b)    

at the end of the definition of “regulated property agent”, insert “;

 

“scheme administrator” has the same meaning as in the

 

scheme approval regulations (see regulation 2 of

 

those regulations); and

 

“scheme approval regulations” means the Client

 

Money Protection Schemes for Property Agents

 

(Approval and Designation of Schemes) Regulations

 

2018.”

 

(3)    

In regulation 3 (requirement to belong to a client money protection

 

scheme), omit paragraph (2).

 
 

 


 
 

7

 
 

(4)    

In regulation 4 (transparency requirements)—

 

(a)    

before paragraph (1) insert—

 

“(A1)    

Paragraph (1) applies if the scheme administrator of an

 

approved or designated client money protection scheme

 

provides a certificate under regulation 8(1) of the scheme

 

approval regulations to a regulated property agent.”, and

 

(b)    

in paragraph (1)—

 

(i)    

in the words before sub-paragraph (a), for “A” substitute

 

“The”, and

 

(ii)    

omit sub-paragraph (a).

 

(5)    

The amendments made by this section are without prejudice to any power

 

to make an order or regulations amending or revoking the regulations

 

mentioned in subsection (1).”

Clause 26

24

Page 17, line 27, at end insert—

 

““excluded licence” means a licence which is granted to a licensee by

 

a licensor who resides in the housing where—

 

(a)    

a charity or community interest company gives advice or

 

assistance to the licensee or the licensor in connection with

 

the grant, renewal or continuation of the licence, and

 

(b)    

the only consideration for the grant, renewal or

 

continuation of the licence is—

 

(i)    

the provision by the licensee of companionship to

 

the licensor, or such provision together with the

 

provision by the licensee of care or assistance (other

 

than financial assistance) to the licensor, or

 

(ii)    

provision of the kind referred to in sub-paragraph (i)

 

together with one or more payments in respect of

 

council tax, a utility, a communication service or a

 

television licence;”

 

25

Page 17, line 42, at end insert “unless it is an excluded licence”

 

26

Page 18, line 18, at end insert—

 

““television licence” has the meaning given by paragraph 9(2) of

 

Schedule 1;”

Clause 27

27

Page 20, line 6, at end insert—

 

“(6)    

In regulation 5 of the Client Money Protection Schemes for Property

 

Agents (Requirement to Belong to a Scheme etc.) Regulations 2019

 

(enforcement)—

 

(a)    

in paragraph (1) omit “, subject to regulation 8(3)”,

 
 

 


 
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Revised 15 January 2019