Pension Schemes Bill (HL Bill 63)

(2) A scheme is exempt from this Part if it is—

(a) a scheme under which all the benefits that may be provided
are money purchase benefits,

(b) a scheme under which all the benefits that may be provided
5are collective benefits,

(c) a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or

(d) a prescribed scheme or a scheme of a prescribed description.

(3) Where—

(a) 10some of the benefits that may be provided under a scheme
are collective benefits and some are not, and

(b) the scheme does not fall within paragraph (c) or (d) of
subsection (2),

the scheme is to be treated for the purposes of this Part as two
15separate schemes, one relating to the collective benefits and the other
relating to the other benefits.

(4) Regulations under subsection (2)(d) may provide for exemptions
from all or any of the provisions of this Part, but for the purposes of
subsection (3)(b) a scheme falls within subsection (2)(d) only if it is
20exempt from all of the provisions of this Part.”

33 In section 254 (representative of non-European scheme to be treated as
trustee), in subsection (3)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) 25the Pension Schemes Act 2014.”

34 In section 258 (pension protection on transfer of employment: form of
protection), in subsection (2)—

(a) in paragraph (b), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
30purchase benefits”;

(b) in paragraph (c), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
purchase benefits”.

35 In section 286 (financial assistance scheme for members of certain pension
35schemes), in subsection (2), for sub-paragraph (i) of paragraph (a) of the
definition of “qualifying pension scheme” (but not the “or” at the end)
substitute—

“(i) a scheme under which all the benefits that may be
provided are money purchase benefits,”.

36 40In section 291 (duty of trustees or managers to act consistently with law of
host member state), in subsection (4)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) the Pension Schemes Act 2014.”

37 45In section 307 (modification of Pensions Act 2004 in relation to certain
categories of schemes), in subsection (4), for paragraph (a) of the definition

of “hybrid scheme” (but not the “but” at the end) substitute—

“(a) which is not a scheme under which all the benefits that may
be provided are money purchase benefits,”.

38 (1) Section 318 (interpretation) is amended as follows.

(2) 5In subsection (1)—

(a) at the appropriate places insert—

• ““collective benefit” has the meaning given by section 8
  of the Pension Schemes Act 2014;”

• ““defined benefits scheme” has the meaning given by
  10section 2 of the Pension Schemes Act 2014;”

• ““defined contributions scheme” has the meaning given
  by section 4 of the Pension Schemes Act 2014;”

• ““occupational”, in relation to a defined benefits
  scheme, shared risk scheme or defined contributions
  15scheme, means an occupational pension scheme of
  that description;”

• ““shared risk scheme” has the meaning given by section
  3 of the Pension Schemes Act 2014;”;

(b) omit the definition of “money purchase scheme”.

(3) 20In subsection (3)—

(a) in paragraph (a), after sub-paragraph (vii) insert—

“(viii) regulations made under Part 2 of the Pension
Schemes Act 2014;”;

(b) in paragraph (b), after sub-paragraph (v) insert—

“(vi) 25regulations made under section 34 of the Pension
Schemes Act 2014.”

Pensions Act 2008 (c. 30)2008 (c. 30)

39 The Pensions Act 2008 is amended as follows.

40 (1) Section 20 (quality requirement: UK money purchase schemes) is amended
30as follows.

(2) In subsection (1), for “A money purchase scheme” substitute “An
occupational defined contributions scheme”.

(3) In the heading, for “money purchase schemes” substitute “occupational
defined contributions schemes”.

41 35In section 21 (quality requirement: UK defined benefits schemes) for “A
defined benefits scheme” substitute “An occupational defined benefits
scheme”.

42 In section 23A (alternative quality requirements for UK defined benefits
schemes), in subsection (1), for “a defined benefits scheme” substitute “an
40occupational defined benefits scheme”.

43 (1) Section 24 (quality requirement: UK hybrid schemes) is amended as follows.

(2) In subsection (1)—

(a) for “A hybrid scheme” substitute “A shared risk scheme”;

(b) in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;

(c) in paragraph (b), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”;

(d) 5after paragraph (b) insert—

“(c) the requirements under section 26 for a personal
pension scheme that is a defined contributions
scheme, subject to any prescribed modifications.”

(3) In subsection (2), for “hybrid scheme” substitute “shared risk scheme”.

(4) 10In the heading, for “hybrid schemes” substitute “shared risk schemes”.

44 (1) Section 26 (quality requirement: UK personal pension schemes) is amended
as follows.

(2) In subsection (1), after “personal pension scheme” insert “that is a defined
contributions scheme”.

(3) 15Omit subsection (3) (requirement for all benefits to be money purchase
benefits).

(4) In subsection (4), for “second condition” substitute “first condition”.

(5) In subsection (6), for “third condition” substitute “second condition”.

(6) In subsection (7), for “fourth condition” substitute “third condition”.

45 (1) 20Section 28 (certification that quality requirement or alternative requirement
is satisfied) is amended as follows.

(2) In subsection (3)—

(a) in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;

(b) 25in paragraph (b), after “a personal pension scheme” insert “that is a
defined contributions scheme”;

(c) for paragraph (c) substitute—

“(c) a shared risk scheme, to the extent that requirements
within section 24(1)(a) or (c) apply.”

(3) 30In subsection (3A)—

(a) for paragraph (a) substitute—

“(a) an occupational defined contributions scheme that is
within section 18(b);”

(b) for paragraph (c) substitute—

“(c) 35an occupational shared risk scheme that is within
section 18(b), to the extent prescribed;”.

(4) In subsection (3B), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”.

46 For the heading to section 29 substitute “Transitional periods for certain
40schemes”.

47 (1) Section 30 (transitional period for defined benefits and hybrid schemes) is
amended as follows.

(2) In subsection (1), for “hybrid schemes” substitute “shared risk schemes”.

(3) In subsection (2)(b) and (c), for “a defined benefits scheme or a defined
benefits member of a hybrid scheme” substitute “an occupational defined
benefits scheme or a defined benefits member of a shared risk scheme”.

(4) In subsection (3)—

(a) 5in the opening words, for “hybrid schemes” substitute “shared risk
schemes”;

(b) in the substituted subsection (2), for paragraphs (a) and (b)
substitute—

“(a) an active member, with effect from the end of the
10transitional period for defined benefits and shared
risk schemes, of an automatic enrolment scheme
which is an occupational defined benefits scheme, or

(b) a defined benefits member, with effect from the end
of that period, of an automatic enrolment scheme
15which is a shared risk scheme.”

(5) In subsection (4), for “hybrid schemes” substitute “shared risk schemes”.

(6) In subsection (5)—

(a) in the substituted subsection (2)(a), for “a defined benefits scheme”
substitute “an occupational defined benefits scheme”;

(b) 20in the substituted subsection (2)(aa), for “hybrid scheme” substitute
“shared risk scheme”;

(c) in the substituted subsection (2), for paragraph (b) substitute—

“(b) becomes an active member, with effect from the
automatic enrolment date, of an automatic enrolment
25scheme which is—

(i) a personal pension scheme other than a
shared risk scheme, or

(ii) an occupational pension scheme under which
all the benefits that may be provided are
30money purchase benefits or collective
benefits;”;

(d) in the substituted subsection (2)(c), for “hybrid scheme” substitute
“shared risk scheme”;

(e) in the substituted subsection (2)(d), for “a defined benefits scheme”
35substitute “an occupational defined benefits scheme”;

(f) in the substituted subsection (2)(e), for “hybrid scheme” substitute
“shared risk scheme”.

(7) In subsections (8) and (9), for “hybrid schemes” substitute “shared risk
schemes”.

(8) 40In subsection (10)(a) and (b), for “hybrid scheme” substitute “shared risk
scheme”.

(9) In subsection (11)—

(a) in paragraph (a), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”;

(b) 45in paragraph (b), for “hybrid scheme” substitute “shared risk
scheme”.

(10) In the heading, for “hybrid schemes” substitute “shared risk schemes”.

48 In section 35 (compliance notices), in subsection (5), for “a defined benefits
scheme or a hybrid scheme” substitute “an occupational defined benefits
scheme or a shared risk scheme”.

49 In section 38 (calculation and payment of contributions), in subsection (2)(e),
5for “a money purchase scheme, a hybrid scheme or a personal pension
scheme” substitute “a defined contributions scheme or a shared risk
scheme”.

50 (1) Section 99 (interpretation) is amended as follows.

(2) At the appropriate places insert—

• 10““defined benefits scheme” has the meaning given by section 2
  of the Pension Schemes Act 2014;”

• ““defined contributions scheme” has the meaning given by
  section 4 of the Pension Schemes Act 2014;”

• ““occupational”, in relation to a defined benefits scheme, shared
  15risk scheme or defined contributions scheme, means an
  occupational pension scheme of that description;”

• ““shared risk scheme” has the meaning given by section 3 of the
  Pension Schemes Act 2014;”.

(3) Omit the following definitions—

• 20“defined benefits”;

• “defined benefits scheme”;

• “hybrid scheme”;

• “money purchase scheme”.

Pensions Act 2014 (c.19)2014 (c.19)

51 (1) 25Schedule 17 to the Pensions Act 2014 (automatic transfer of pension benefits
etc) is amended as follows.

(2) In paragraph 1(2)(a) and (5)(a), for “money purchase scheme” substitute
“scheme under which all the benefits that may be provided are money
purchase benefits”.

(3) 30In paragraph 15(1) omit the definition of “money purchase scheme”.

Section 47

SCHEDULE 3 Pensions guidance

1 The Financial Services and Markets Act 2000 is amended as follows.

2 After section 333 insert—

“Part 20A

Pensions guidance

333A 35Introduction and definitions

(1) This Part is about the giving of pensions guidance.

(2) “Pensions guidance” means guidance given for the purpose of
helping a member of a pension scheme to make decisions about what
to do with the flexible benefits that may be provided to the member.

(3) In this Part—

• 5“flexible benefit” has the meaning given by section 72 of the
  Pension Schemes Act 2014;

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

• “pension scheme” has the meaning given by section 1(5) of the
  Pension Schemes Act 1993.

10Giving 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) The Treasury may—

(a) 15seek 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) The bodies listed in subsection (2) are to give pensions guidance in
20accordance 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) the Scottish Association of Citizens Advice Bureaux;

(d) 25the 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
listed body).

(4) 30The 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) The Treasury may by regulations repeal one or more of paragraphs
35(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) The Treasury may make grants or loans or give any other form of
40financial assistance to—

(a) the Pensions Advisory Service Limited;

(b) the Northern Ireland Association of Citizens Advice
Bureaux.

(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) 5Any grant, loan or other form of financial assistance under
subsection (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
10Treasury consider appropriate.

Designation of guidance providers

333E Designation of providers of pensions guidance

(1) In this Part “designated guidance provider” means—

(a) the Pensions Advisory Service Limited,

(b) 15the National Association of Citizens Advice Bureaux,

(c) the Scottish Association of Citizens Advice Bureaux,

(d) the Northern Ireland Association of Citizens Advice
Bureaux, or

(e) a person designated by the Treasury as someone who must,
20in giving pensions guidance, comply with standards set by
the FCA under section 333H.

(2) Before designating a person under subsection (1)(e), the Treasury
must—

(a) consult the FCA,

(b) 25notify the person to be designated, and

(c) consider any representations made.

(3) The Treasury may revoke a designation under subsection (1)(e).

(4) The Treasury must give notice in writing of a designation under
subsection (1)(e) or the revocation of a designation under subsection
30(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)
to—

(a) all other designated guidance providers, and

(b) 35the 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
subsection (1)(e).

Co-operation and information sharing

333F 40 Co-operation and information sharing

(1) The following must co-operate with one another in matters relating
to the giving of pensions guidance—

(a) each designated guidance provider;

(b) the Treasury.

(2) Designated guidance providers and the Treasury may share
information for the purposes of subsection (1).

False claims when giving pensions guidance

333G 5Offence 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
under arrangements made with the Treasury—

(a) to describe himself (in whatever terms) as a person who is
10doing so, or

(b) to behave, or otherwise hold himself out, in a manner which
indicates (or which is reasonably likely to be understood as
indicating) that he is doing so.

(2) For the purposes of subsection (1), pensions guidance given by a
15designated guidance provider is given under arrangements made
with the Treasury.

(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) 20A person guilty of an offence under this section is liable on summary
conviction—

(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
25months or a fine not exceeding level 5 on the standard scale,
or 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) 30In relation to an offence committed before section 281(5) of the
Criminal 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
35force, the reference in subsection (4)(a) to a fine is to be read as a
reference to a fine not exceeding level 5 on the standard scale.

Standards for giving of pensions guidance by designated guidance providers

333H Standards for giving of pensions guidance by designated guidance
providers

(1) 40The FCA must from time to time set standards for the giving of
pensions 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
statutory duty.

(3) In subsection (2) “private person” has the same meaning as in section
138D.

(4) 5Standards set under this section may provide for subsection (2) not
to apply to a failure to comply with a specified provision of the
standards.

(5) Standards set under this section—

(a) may make different provision for different cases and may, in
10particular, make different provision in respect of different
classes of designated guidance providers or different types of
pensions guidance;

(b) may include incidental, supplemental, consequential or
transitional provision.

(6) 15The 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
modifications in the second column.

333I Monitoring of compliance with standards by designated guidance
50providers

(1) The FCA must maintain arrangements for monitoring compliance by
designated guidance providers with the standards set under section
333H.

(2) Sections 165 and 167 apply for the purpose of enabling the FCA to
55monitor compliance but as if—

(a) references to an authorised person or a former authorised
person (other than in section 165(11)(d)) were references to a
designated guidance provider or a former designated
guidance provider;

(b) 60section 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) 65Section 177 applies as if a requirement imposed by virtue of
subsection (2) were a requirement imposed under Part 11.

(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.

333J 70Failure by designated guidance providers to comply with standards:
FCA recommendations

(1) If the FCA considers that a designated guidance provider has failed
to comply with a standard set under section 333H the FCA may—

(a) recommend steps that the designated guidance provider
75might take to prevent the continuance or recurrence of the
failure 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 333M.

(2) The FCA must publish a recommendation made under subsection
80(1)(b) unless the FCA considers that to do so—

(a) would 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
85part only of the recommendation, the FCA may publish that part.

(4) If the power conferred by section 333E(3) to revoke a designation is
exercised before the power in subsection (1) the reference in
subsection (1) to a designated guidance provider is to be read as a
reference to a person who, at the time of the failure to comply, was a
90designated guidance provider.

333K FCA policy on making recommendations under section 333J

(1) The FCA must prepare and issue a statement of its policy with
respect to the making of recommendations under section 333J.

(2) The FCA may at any time alter or replace a statement issued under
this section.

(3) If a statement issued under this section is altered or replaced, the
FCA must issue the altered or replaced statement.

(4) 5The 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
in the way appearing to the FCA to be best calculated to bring it to
the attention of the public.

(6) 10The FCA may charge a reasonable fee for providing a person with a
copy of the statement.

333L FCA policy on making recommendations under section 333J:
procedure

(1) Before issuing a statement under section 333K, the FCA must—

(a) 15consult 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
attention of the public.

(2) The draft must be accompanied by notice that representations about
20the 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.

(4) If the FCA issues the proposed statement it must publish an account,
in general terms, of—

(a) 25the representations made to it within the specified time, and

(b) its response to them.

(5) If 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
30details of the difference.

(6) The FCA may charge a reasonable fee for providing a person with a
copy of a draft published under subsection (1)(b).

(7) This section also applies to a proposal to alter or replace a statement.

333M Failure by designated guidance providers to comply with standards:
35Treasury directions

(1) If the Treasury consider that a designated guidance provider has
failed to comply with a standard set under section 333H the Treasury
may direct the provider to take such steps as the Treasury consider
appropriate—

(a) 40to prevent the continuance or recurrence of the failure;

(b) to make redress to those affected by the failure.

(2) The Treasury may give a direction under subsection (1) only if the
FCA has made a recommendation under section 333J(1)(b) (although