Water Bill (HL Bill 88)

(ii) a person who holds or has control of any of those documents is
to give the Comptroller and Auditor General any assistance,
information or explanation which the Comptroller and Auditor
General requires in relation to any of those documents.

(5) 5Regulations under subsection (1) may—

(a) require the FR Scheme administrator to designate an individual of a
description specified in the regulations as the responsible officer of the
FR Scheme;

(b) provide for the responsible officer to have such responsibilities in
10respect of—

(i) the FR Scheme's finances,

(ii) the FR Scheme's accounts,

(iii) accountability to Parliament for the economy, efficiency and
effectiveness with which the FR Scheme uses resources in
15discharging its functions;

(iv) accountability to Parliament for propriety and regularity in the
operation of the FR Scheme, and

(v) examinations and reports under subsection (4)(f),

as are specified in the regulations.

(6) 20Regulations under subsection (1) may make provision about the disclosure of
information required for the purposes of the FR Scheme and may, in
particular—

(a) as regards information which is held for council tax purposes by the
Valuation Office of Her Majesty's Revenue and Customs, make
25provision—

(i) for the supply of such information to the FR Scheme
administrator, to relevant insurers and to such other persons, or
descriptions of persons, as may be specified in the regulations;

(ii) for any such supply to be subject to such conditions as may be
30specified in the regulations;

(iii) making it an offence for a person to fail to comply with any such
condition, subject to any defence specified in the regulations;

(b) require relevant insurers to supply to the FR Scheme administrator
such information as it may request in relation to insurance policies
35issued by them.

(7) Regulations under subsection (1) may provide for the supply by the FR Scheme
administrator of information held by it in connection with the FR Scheme to—

(a) the Environment Agency,

(b) the Scottish Environment Protection Agency,

(c) 40the Natural Resources Body for Wales,

(d) the Department of Agriculture and Rural Development in Northern
Ireland, or

(e) such other body as may be specified in the regulations.

(8) Regulations under subsection (1) may provide for the supply by the FR Scheme
45administrator of information held by it in connection with the FR Scheme to the
Secretary of State for purposes relating to government accounting.

(9) Subsections (2) to (8) are not exhaustive of what may be done under subsection
(1).

(10) In this section, “the FR Scheme's accounts” means the accounts for a financial
year of the FR Scheme prepared by the FR Scheme administrator in respect of
the FR Scheme.

55 Replacement of the scheme or administrator

(1) 5Where regulations under section 51 replace the FR Scheme by revoking a
designation and making a new designation, the regulations may make such
provision as the Secretary of State thinks fit in connection with the replacement
of the old FR scheme with the new FR scheme.

(2) Where regulations under section 52 replace the FR Scheme administrator by
10revoking a designation and making a new designation, the regulations may
make provision for the transfer of property, rights and liabilities relating to the
FR Scheme from the old administrator to the new administrator.

56 Disclosure of information: preparatory purposes

(1) The Secretary of State may by regulations make provision about the disclosure
15of HMRC council tax information in connection with such scheme as may be
established and designated in accordance with section 51.

(2) In this section “HMRC council tax information” means information which is
held for council tax purposes by the Valuation Office of Her Majesty's Revenue
and Customs.

(3) 20Regulations under subsection (1) may, in particular, make provision—

(a) for the supply of HMRC council tax information to such persons, or
descriptions of persons, as may be specified in the regulations;

(b) for any such supply to be subject to such conditions as may be specified
in the regulations,

(c) 25making it an offence for a person to fail to comply with any such
condition, subject to any defence specified in the regulations;

(d) about the destruction, in such circumstances as may be specified in the
regulations, of records of any HMRC council tax information obtained
by virtue of the regulations.

30Flood insurance obligations

57 Flood insurance obligations

(1) The Secretary of State may by regulations require a relevant insurer to issue in
a prescribed period insurance policies that provide cover against a prescribed
description of risk for a prescribed number of registered premises.

(2) 35The regulations may prescribe different numbers of registered premises for
different descriptions of risk.

(3) The descriptions of risks that may be prescribed are those relating to the effects
of flooding.

(4) The regulations may provide for a prescribed number relating to a relevant
40insurer to be determined by reference to factors that include in particular—

(a) a target number (see section 58);

(b) the relevant insurer's share of insurance business of a prescribed
description.

(5) The regulations may—

(a) make provision about determining the size of a relevant insurer's share
5of insurance business of a prescribed description;

(b) provide for a relevant insurer to be exempt from the obligation
described in subsection (1) in prescribed circumstances, whether
wholly or so far as regards a particular description of risk, including
circumstances relating to the amount of insurance business done by the
10relevant insurer;

(c) make provision about the circumstances in which a relevant insurer
ceases to be subject to the obligation described in subsection (1),
whether wholly or so far as regards a particular description of risk;

(d) make provision about the cases in which issuing an insurance policy is
15not to count towards discharging an obligation imposed on a relevant
insurer by the regulations, including cases in which an insurance policy
is not to count because of the content of its terms;

(e) make provision for allowing an insurance policy issued by another
insurer to count towards the discharge of an obligation to issue a
20number of insurance policies imposed on a relevant insurer by the
regulations;

(f) make provision about determining the number of registered premises
for which a relevant insurer has issued insurance policies, including
provision for varying, by reference to the risk band applicable to the
25particular registered premises, the extent to which insuring those
premises counts in determining that number.

(6) Provision under subsection (5)(a) may require an insurer, in determining the
insurer's share of insurance business of a prescribed description, to use
information about that insurance business held by—

(a) 30the Secretary of State,

(b) a person acting on behalf of the Secretary of State, or

(c) the FCA.

(7) Subsection (5)(e) is not to be taken as requiring a change in the person who is
the insurer in relation to an insurance policy.

(8) 35Regulations under this section may include provision in respect of cases where
an insurer has not provided such information as is required by regulations
under section 59 including—

(a) provision for determining whether the insurer is a relevant insurer,

(b) provision for determining whether an exemption applies, and

(c) 40provision for determining what share of insurance business of a
prescribed description the insurer is to be treated as having.

(9) Before making regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

(10) In this section “prescribed” means specified in or determined in accordance
45with regulations under this section.

58 Target number

(1) The Secretary of State may, from time to time, by regulations prescribe a
number to be a target number for the purposes of regulations under section 57.

(2) A target number is the number of registered premises to be covered against a
5prescribed description of risk by insurance policies issued in a prescribed
period by those relevant insurers upon whom obligations are imposed by
regulations under section 57.

(3) The regulations may prescribe different target numbers for different
descriptions of risk.

(4) 10The regulations may in particular provide for a target number to be expressed
as a percentage of the number of registered premises.

(5) The regulations may, at any one time, prescribe target numbers for two or more
consecutive prescribed periods.

(6) In this section “prescribed” means specified in or determined in accordance
15with regulations under this section.

59 Information

(1) The Secretary of State may by regulations make provision about—

(a) the provision of information, and

(b) the production of documents,

20by insurers for the purposes of regulations under section 57.

(2) The regulations may in particular require an insurer to provide information of
a prescribed description or produce documents of a prescribed description for
the purpose of showing, in relation to a prescribed period—

(a) whether or not an insurer is a relevant insurer;

(b) 25whether or not an exemption applies (see section 57(5)(b)).

(3) The regulations may in particular require an insurer to provide information or
produce documents about—

(a) the insurance policies issued by it in a prescribed period that provide
cover against prescribed descriptions of risk;

(b) 30the value of the insurance policies so issued;

(c) insurance policies so issued that do not remain in force to the end of the
period of cover;

(d) the value of such insurance policies.

(4) The regulations may provide for information to be provided or documents to
35be produced to the Secretary of State or a person acting on behalf of the
Secretary of State.

(5) The regulations may make provision—

(a) about the time within which information must be provided or
documents produced;

(b) 40about the form in which information is to be provided;

(c) about the place where documents are to be produced;

(d) requiring information to be verified in a prescribed manner;

(e) requiring documents to be authenticated in a prescribed manner.

(6) The regulations may make provision about—

(a) the persons to whom, and the purposes for which, information
supplied by an insurer may be disclosed;

(b) the publication of information by the Secretary of State about the
5amount of insurance business of a prescribed description done by
insurers, taken together.

(7) In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

60 Section 59: further provision

(1) 10The Secretary of State may by regulations make provision for and in
connection with enforcing compliance with obligations imposed by
regulations under section 59.

(2) The regulations may in particular include—

(a) provision about the sanctions, including civil penalties, that may be
15imposed by the Secretary of State or a person acting on behalf of the
Secretary of State for non-compliance with the obligations;

(b) provision about the procedure to be followed when imposing a
sanction;

(c) provision about the recovery of costs incurred in connection with
20imposing a sanction up to the time of its imposition;

(d) provision enabling an appeal to the First-tier Tribunal against the
imposition of a sanction or a requirement to pay costs.

(3) Provision under subsection (2)(a) may in particular include—

(a) provision for civil penalties of a fixed amount;

(b) 25provision for further amounts to be payable by way of civil penalty
where an insurer continues to fail to comply with the obligation in
question;

(c) provision about how a civil penalty or an amount of costs may be
recovered.

(4) 30Provision under subsection (2)(d) may include provision as to the grounds on
which an appeal may be made.

61 Register of premises subject to greater flood risk

(1) The Secretary of State may by regulations provide for the creation and
maintenance of a register of household premises in the United Kingdom that
35are subject to greater flood risk for the purposes of regulations under section
57.

(2) The regulations may provide for the levels of flood risk to which premises are
subject to be divided into two or more bands (“risk bands”), and may prescribe
the upper and lower limits of each band.

(3) 40The regulations may provide for the register to specify the level of flood risk to
which particular household premises are subject by specifying the risk band
applicable to the premises.

(4) The regulations may provide for premises of a description specified in the
regulations to be excluded from the register, and the premises excluded may

include in particular premises where construction is completed on or after a
date specified in the regulations.

(5) The regulations may—

(a) specify the information to be contained in the register;

(b) 5make provision about access to the information contained in the
register;

(c) provide for the publication of the register in whole or in part;

(d) provide for the disclosure of information contained in the register;

(e) provide for notification if premises are entered in, or omitted from, the
10register.

(6) Regulations made under subsection (5)(d) may provide for—

(a) the persons to whom information or any description of information
contained in the register may be disclosed,

(b) the imposition of conditions on persons to whom information
15contained in the register is disclosed, including conditions limiting
further disclosure;

(c) penalties for non-compliance with conditions imposed under
paragraph (b).

(7) The regulations may require applications for premises to be entered in the
20register to be made by or on behalf of a person who has the qualifying interest
in the premises.

(8) The regulations may provide for premises to be omitted from the register at the
request of a person who has the qualifying interest in the premises.

(9) Before making regulations under this section the Secretary of State must
25consult—

(a) the Welsh Ministers;

(b) the Scottish Ministers;

(c) the Department of Agriculture and Rural Development in Northern
Ireland.

62 30Functions of relevant bodies

(1) Regulations under section 61 may provide for a relevant body to carry out
functions in connection with—

(a) the creation and maintenance of the register;

(b) giving access to information contained in the register;

(c) 35publication of the register;

(d) disclosure of information contained in the register;

(e) notification when premises are entered in, or omitted from, the register.

(2) The following are relevant bodies for the purposes of this Part—

(a) the Environment Agency;

(b) 40the Scottish Environment Protection Agency, in relation to Scotland;

(c) the Natural Resources Body for Wales, in relation to Wales;

(d) the Department of Agriculture and Rural Development in Northern
Ireland, in relation to Northern Ireland.

(3) The regulations may provide for the Environment Agency—

(a) to coordinate the carrying out of functions conferred or imposed under
subsection (1);

(b) to promote consistency in the carrying out of those functions.

(4) The regulations may—

(a) 5require the relevant bodies to cooperate with each other as regards the
functions conferred or imposed on any of them under subsection (1);

(b) require the relevant bodies (other than the Environment Agency) to
cooperate with the Environment Agency as regards the carrying out of
functions conferred or imposed on the Environment Agency under
10subsection (3).

(5) Regulations under section 61 may provide for the Commissioners for Her
Majesty's Revenue and Customs, or a person authorised by them, to disclose
information held for council tax purposes by the Valuation Office to—

(a) the Environment Agency, or

(b) 15the Natural Resources Body for Wales,

for use in identifying premises to be excluded from the register by reference to
the date of completion of construction (see section 61(4)).

(6) The regulations may include provision restricting the use or further disclosure
of information disclosed under subsection (5).

63 20Reviews and appeals

(1) Regulations under section 61 may make provision for a person with the
qualifying interest in particular premises—

(a) to request a review of a decision by a relevant body that the premises
are not eligible to be entered in the register;

(b) 25to appeal against a decision by a relevant body that the premises are not
eligible to be entered in the register to—

(i) the sheriff, in relation to Scotland,

(ii) the Water Appeals Commission for Northern Ireland, in
relation to Northern Ireland, or

(iii) 30the First-tier Tribunal, in any other case.

(2) For “relevant body”, see section 62(2).

64 Expenses of relevant bodies

(1) The Secretary of State may, with the consent of the Treasury, by regulations
provide for a levy to be payable to the Secretary of State by insurers of a
35description specified in the regulations.

(2) The regulations may—

(a) specify the rate of the levy or the method by which it is to be calculated;

(b) make provision as to the times when, and the manner in which,
payments are to be made in respect of the levy.

(3) 40The regulations may in particular make provision for determining the amount
of the levy by reference to the qualifying expenses of the relevant bodies and
the Secretary of State.

(4) The regulations may make provision for amounts payable by way of levy
under the regulations to be recoverable summarily (or in Scotland recoverable)
as a civil debt.

(5) Before making regulations under this section the Secretary of State must
5consult—

(a) the Welsh Ministers;

(b) the Scottish Ministers;

(c) the Department of Agriculture and Rural Development in Northern
Ireland.

(6) 10In this section “qualifying expenses” means—

(a) in relation to a relevant body, such proportion of the expenses of the
relevant body as the Secretary of State considers reasonable having
regard to the functions exercisable by that body under regulations
under section 61;

(b) 15in relation to the Secretary of State, the expenses of the Secretary of
State attributable to the exercise of functions conferred by or under this
section.

(7) For “relevant body”, see section 62(2).

65 Compliance reports

(1) 20The Secretary of State may by regulations make provision about reporting
compliance with obligations imposed by regulations under section 57.

(2) The regulations may require a relevant insurer to make a report—

(a) stating the extent to which it has complied with obligations imposed on
it by regulations under section 57 in relation to a prescribed period;

(b) 25providing prescribed details about the basis on which it considers that
it has complied with those obligations to that extent.

(3) The regulations may provide for reports to be given to the FCA.

(4) In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

66 30Functions of the FCA

(1) The Treasury may by regulations provide for the FCA to take action for
monitoring and enforcing compliance with—

(a) such of the obligations imposed on relevant insurers by regulations
under section 57 or 65 as may be specified in the regulations;

(b) 35such description of those obligations as may be specified in the
regulations.

(2) The regulations may provide for the FCA to take action for enforcing
compliance with—

(a) such of the obligations imposed on insurers by regulations under
40section 59 as may be specified in the regulations;

(b) such description of those obligations as may be specified in the
regulations.

(3) Regulations under subsection (2) may only provide for the FCA to take action
as regards cases where—

(a) the failure to comply, if proved, would consist in or involve providing
information that is not true or producing a document that is not correct,
or

(b) measures available under section 60 have been taken without securing
5compliance.

(4) The regulations may apply, or make provision corresponding to, any of the
provisions of the Financial Services and Markets Act 2000 or the Financial
Services Act 2012, with or without modification.

(5) The provisions of the Financial Services and Markets Act 2000 and the
10Financial Services Act 2012 referred to in subsection (4) include in particular—

(a) provisions about gathering information and investigating, including
provisions as to powers of entry and search;

(b) provisions as to criminal offences and disciplinary measures;

(c) provisions for the grant of an injunction in relation to a contravention
15or anticipated contravention;

(d) provisions giving the Treasury or the FCA powers to make subordinate
legislation;

(e) provisions for the FCA to charge fees;

(f) provisions restricting liability in damages in relation to the discharge of
20functions of the FCA.

(6) The regulations may make provision enabling the FCA, to such extent as the
regulations may prescribe, to make arrangements for the performance of
functions on its behalf.

67 Reports by the FCA

(1) 25The Treasury may by regulations provide for the FCA to prepare reports on its
discharge of the functions conferred on it under section 66.

(2) The regulations may—

(a) make provision about the contents of the reports;

(b) make provision about the timing of the reports;

(c) 30provide for copies of the report to be given to the Secretary of State and
such other persons as the regulations may specify;

(d) provide for publication of the reports.

68 Intervention by the FCA or the PRA

(1) The Treasury may by regulations confer on a regulator the power to disapply
35or modify, in relation to a relevant insurer, an obligation imposed by
regulations under—

(a) section 57 (flood insurance obligations),

(b) section 59 (information), or

(c) section 65 (compliance reports).

(2) 40In this section “the intervention power” means the power conferred by
regulations under subsection (1).

(3) The regulations may specify which obligations, or which descriptions of
obligations, a regulator may disapply or modify under the intervention power.

(4) The regulations may specify what modifications, or what descriptions of
modifications, may be made by a regulator under the intervention power.

(5) The regulations may specify the circumstances in which, and the conditions
subject to which, a regulator may exercise the intervention power.

(6) 5Provision under subsection (5) may in particular provide for a regulator to
exercise the intervention power in relation to a relevant insurer—

(a) where the relevant insurer is failing, or is likely to fail, to satisfy the
threshold conditions for which the regulator is responsible,

(b) in connection with advancing—

(i) 10if the regulator is the FCA, one or more of the FCA's operational
objectives, or

(ii) if the regulator is the PRA, one or more of the PRA's objectives,

(c) in conjunction with the exercise by the regulator, in respect of the
relevant insurer, of a power that is conferred on the regulator by or
15under an enactment and is specified in the regulations, or

(d) at the request of, or for the purpose of assisting, an overseas regulator
of a kind specified in the regulations.

(7) The regulations may —

(a) make provision about the procedure to be followed when exercising
20the intervention power, including provision about consulting such
persons as may be specified in the regulations about a proposed
exercise of the power;

(b) make provision requiring a regulator to give a relevant insurer notice
in writing specifying how the intervention power has been exercised in
25relation to that relevant insurer;

(c) make provision about when an exercise of the intervention power takes
effect;

(d) make provision about the period for which a provision of regulations
may be disapplied or modified under the intervention power,
30including—

(i) provision enabling a regulator to specify the period for which a
provision of regulations is disapplied or modified;

(ii) provision for disapplying or modifying a provision of
regulations until a regulator provides for it to apply again or to
35apply again without modification;

(e) make provision requiring a regulator—

(i) to send copies of a notice under paragraph (b) to the Secretary
of State and such other persons as may be specified in the
regulations;

(ii) 40to notify such persons as may be specified in the regulations of
the exercise of the intervention power;

(f) make provision requiring a regulator to publish such details about the
exercise of the intervention power as may be specified in the
regulations;

(g) 45make provision requiring a regulator to keep under review each case in
which a provision of regulations is disapplied or modified;

(h) make provision about the matters to which a regulator is to have regard
in exercising its functions under the regulations.