Small Business, Enterprise and Employment Bill (HL Bill 103)

(9) The Minister of the Crown must—

(a) publish the report and the response, and

(b) lay them before Parliament.

(10) The reviewer may by notice require the relevant regulator to provide such
5documents or other information, in such form or manner as the reviewer may
direct, as the reviewer may require for the purpose of exercising functions
under this section.

(11) Subsection (10) is subject to any express restriction on disclosure imposed by
another enactment (ignoring any restriction which allows disclosure if
10authorised by an enactment).

(12) In this section “Minister of the Crown” has the same meaning as in the
Ministers of the Crown Act 1975.

18 Power to specify regulatory functions

(1) The Secretary of State may by regulations specify regulatory functions as
15functions to which section 17 applies.

(2) “Regulatory function” has the same meaning in this section and section 17 as
in the Legislative and Regulatory Reform Act 2006 (see section 32(2) to (4) of
that Act).

(3) Regulations under this section may, in particular, specify a regulatory function
20by reference to—

(a) the person who exercises the function;

(b) the enactment under or by virtue of which it was conferred.

(4) Regulations under this section must not specify a regulatory function which
is—

(a) 25a Scottish devolved function, that is to say a function the exercise of
which would be within devolved competence (within the meaning of
section 54 of the Scotland Act 1998),

(b) a Northern Ireland devolved function, that is to say a function which
could be conferred by provision included in an Act of the Northern
30Ireland Assembly made without the consent of the Secretary of State
(see sections 6 to 8 of the Northern Ireland Act 1998), or

(c) a Welsh devolved function, that is to say a function which could be
conferred by provision falling within the legislative competence of the
National Assembly for Wales (see section 108 of the Government of
35Wales Act 2006).

(5) Regulations under this section are subject to affirmative resolution procedure.

19 Guidance by the Secretary of State

(1) The Secretary of State may issue guidance to reviewers as to the exercise of
functions under section 17.

(2) 40A reviewer must, in exercising any of those functions, have regard to any
guidance for the time being in force under this section.

(3) The Secretary of State must—

(a) publish any guidance or revised guidance issued under this section,
and

(b) lay any such guidance or revised guidance before Parliament.

(4) In this section “reviewer” has the same meaning as in section 17.

5Report on investigations under financial regulators’ complaints scheme

20 Independent Complaints Commissioner: reporting duty

In section 87 of the Financial Services Act 2012 (investigation of complaints
against regulators), after subsection (9) insert—

“(9A) The complaints scheme must provide—

(a) 10for the investigator to prepare an annual report on its
investigations under the scheme, to publish it and send a copy
of it to each regulator and to the Treasury;

(b) for each regulator to respond to any recommendations or
criticisms relating to it in the report, to publish the response and
15send a copy of it to the investigator and the Treasury;

(c) for the Treasury to lay the annual report and any response
before Parliament.

(9B) The complaints scheme may make provision about the period to which
each annual report must relate (“the reporting period”) and the
20contents of the report and must in particular provide for it to include—

(a) information concerning any general trends emerging from the
investigations undertaken during the reporting period;

(b) any recommendations which the investigator considers
appropriate as to the steps a regulator should take in response
25to such trends;

(c) a review of the effectiveness during the reporting period of the
procedures (both formal and informal) of each regulator for
handling and resolving complaints which have been
investigated by the investigator during the reporting period;

(d) 30an assessment of the extent to which those procedures were
accessible and fair, including where appropriate an assessment
in relation to different categories of complainant;

(e) any recommendations about how those procedures, or the way
in which they are operated, could be improved.”

35Business impact target

21 Duty on Secretary of State to publish business impact target etc

(1) Before the end of the period of 12 months beginning with the commencement
of a Parliament, the Secretary of State must publish—

(a) a target for the Government in respect of the economic impact on
40business activities of qualifying regulatory provisions which come into
force or cease to be in force during the relevant period, and

(b) an interim target applying at the end of the period of three years
beginning with the commencement of the Parliament.

(2) In this section and sections 24 to 26 the target mentioned in subsection (1)(a) is
referred to as the “business impact target”.

(3) At the same time as publishing a business impact target and an interim target,
the Secretary of State must publish—

(a) 5a determination under section 22(2), and

(b) a methodology to be used for assessing the economic impact mentioned
in subsection (1)(a).

(4) The Secretary of State must lay each thing published under subsection (1) or (3)
before Parliament.

(5) 10Subsection (6) applies when the Secretary of State is—

(a) determining a business impact target for publication under subsection
(1)(a), or

(b) making a determination under section 22(2).

(6) The Secretary of State must, in particular, have regard to—

(a) 15the effect of regulation on economic growth and competitiveness,

(b) the need to minimise any disproportionate impact of regulation on
activities carried on by smaller scale businesses or voluntary or
community bodies,

(c) the aim of delivering efficiency in regulating business activities while
20keeping the costs to businesses or voluntary or community bodies to a
minimum.

(7) In this section and sections 23 to 26—

• the “relevant day” means the day after a polling day for a parliamentary
  general election; and

• 25the “relevant period” is the period beginning with the relevant day and
  ending with the polling day for the next parliamentary general election.

(8) Subsection (7) is to be read in accordance with the Fixed-term Parliaments Act
2011.

(9) This section and sections 22 to 27 (the “target provisions”) apply only where the
30commencement of a Parliament mentioned in subsection (1) above occurs—

(a) not more than 12 months before the target provisions come into force,
or

(b) after the target provisions have come into force.

(10) Subsection (11) applies if an early parliamentary election is to take place in
35accordance with section 2 of the Fixed-term Parliaments Act 2011 before the
end of the period of 12 months beginning with the commencement of a
Parliament.

(11) Any duty imposed by the target provisions which would apply at any time
before the commencement of the next Parliament is to be disregarded.

22 40Sections 21 and 23 to 25: “qualifying regulatory provisions” etc

(1) This section applies for the purposes of sections 21 and 23 to 25.

(2) “Qualifying regulatory provisions” means regulatory provisions which the
Secretary of State determines are to be qualifying regulatory provisions for the
purposes of section 21(1)(a).

(3) A “regulatory provision”, in relation to a business activity, means a statutory
provision which—

(a) imposes or amends requirements, restrictions or conditions, or sets or
amends standards or gives or amends guidance, in relation to the
5activity, or

(b) relates to the securing of compliance with, or the enforcement of,
requirements, restrictions, conditions, standards or guidance which
relate to the activity.

(4) But a “regulatory provision” does not include a statutory provision if or to the
10extent that—

(a) it makes or amends—

(i) provision imposing, abolishing or varying any tax, duty, levy or
other charge, or

(ii) provision in connection with provision falling within sub-
15paragraph (i);

(b) it makes or amends provision in connection with procurement;

(c) it makes or amends provision in connection with the giving of grants or
other financial assistance by or on behalf of a public authority;

(d) it makes or amends provision which is to have effect for a period of less
20than 12 months.

(5) Where a statutory provision comes into force or ceases to be in force for some
but not all purposes, references to regulatory provisions or qualifying
regulatory provisions coming into force or ceasing to be in force are to be read
as referring to those provisions in so far as they have come into force or ceased
25to be in force for those purposes.

(6) Subject to subsection (7) a “statutory provision” is—

(a) a provision of an Act,

(b) a provision of subordinate legislation made by a Minister of the Crown,
or

(c) 30any other provision which has effect by virtue of the exercise of a
function conferred on a Minister of the Crown by an Act.

(7) A “statutory provision” does not include—

(a) a provision which would be within the legislative competence of the
Scottish Parliament if it were contained in an Act of that Parliament (see
35section 29 of the Scotland Act 1998),

(b) a provision which could be included in an Act of the Northern Ireland
Assembly made without the consent of the Secretary of State (see
sections 6 to 8 of the Northern Ireland Act 1998), or

(c) a provision falling within the legislative competence of the National
40Assembly for Wales (see section 108 of the Government of Wales Act
2006).

(8) In this section—

• “Minister of the Crown” has the same meaning as in the Ministers of the
  Crown Act 1975;

• 45“public authority” has the same meaning as in the Freedom of
  Information Act 2000 (see section 3 of that Act); and

• “subordinate legislation” has the same meaning as in the Interpretation
  Act 1978.

23 Duty on Secretary of State to publish reports

(1) The Secretary of State must publish a report in respect of each reporting period
during the relevant period.

(2) The report must assess the economic impact on business activities of the
5qualifying regulatory provisions which have come into force or ceased to be in
force during the reporting period.

(3) The report must include—

(a) a list of all the qualifying regulatory provisions which have come into
force or ceased to be in force during the reporting period,

(b) 10an assessment of the economic impact on business activities of each of
the qualifying regulatory provisions falling within paragraph (a) made
by reference to the methodology published under section 21(3)(b) (but
see section 24(2)),

(c) an assessment of the aggregate economic impact on business activities
15of all of the qualifying regulatory provisions falling within paragraph
(a),

(d) if there have been preceding reporting periods during the relevant
period, an assessment of the aggregate economic impact on business
activities of all of the qualifying regulatory provisions which have come
20into force or ceased to be in force during the reporting period in
question and all of the preceding reporting periods,

(e) an assessment of the contribution of the actions taken by each
Government department to the aggregate economic impact mentioned
in paragraphs (c) and (d), and

(f) 25a list of all the regulatory provisions (as defined in section 22(3)) which
have come into force or ceased to be in force during the reporting
period which do not fall within paragraph (a).

(4) The report must describe the actions taken by Government departments to
mitigate any disproportionate economic impact on activities carried on by
30smaller scale businesses or voluntary or community bodies of regulatory
provisions (as defined in section 22(3)) which have come into force during the
reporting period.

(5) Subsection (6) applies in respect of regulatory provisions (as defined in section
22(3)) which—

(a) 35have come into force during the reporting period, and

(b) implement an EU obligation or any other international obligation of the
United Kingdom.

(6) The report must include—

(a) a description of any provision made in the provisions in question which
40goes beyond the minimum provision necessary for implementing the
obligation, and

(b) the reasons for that provision.

(7) Each of the following is a reporting period—

(a) the period beginning with the relevant day and ending at the end of the
45period of 12 months beginning with the commencement of the
Parliament,

(b) the next successive period of 12 months,

(c) the next successive period of 12 months,

(d) the next successive period of 12 months, and

(e) the period which begins at the end of the period mentioned in
paragraph (d) and ends at the end of the relevant period.

(8) But subsection (9) applies if an early parliamentary general election is to take
5place in accordance with section 2 of the Fixed-term Parliaments Act 2011
during a reporting period mentioned in any of subsection (7)(b) to (d) (the
“election reporting period”).

(9) Subsection (7) has effect as if—

(a) any provision relating to the election reporting period and any
10subsequent reporting periods mentioned in paragraph (c) or (d) were
omitted, and

(b) paragraph (e) referred to the period which begins at the beginning of
the election reporting period and ends at the end of the relevant period.

(10) A report must be published—

(a) 15no later than one month after the end of the reporting period, if the
report is in respect of a reporting period mentioned in any of subsection
(7)(a) to (d);

(b) before the dissolution of Parliament, if the report is in respect of a
reporting period mentioned in subsection (7)(e).

(11) 20Where a report is in respect of a reporting period mentioned in subsection
(7)(e), the references to qualifying regulatory provisions or regulatory
provisions which have come into force or ceased to be in force during the
reporting period include qualifying regulatory provisions or regulatory
provisions which are expected to come into force or to cease to be in force
25during that reporting period.

(12) The Secretary of State must lay any report before Parliament.

24 Additional matters to be included in reports

(1) This section makes provision supplementary to section 23.

(2) An assessment in respect of a qualifying regulatory provision may be included
30in a report by virtue of section 23(3)(b) only if the assessment is verified by the
body appointed under section 25.

(3) Subsection (4) applies if an assessment in respect of a qualifying regulatory
provision is not included in a report in respect of a reporting period mentioned
in any of section 23(7)(a) to (d) because of subsection (2) above.

(4) 35The report in respect of the immediately following reporting period must
include an assessment of the economic impact on business activities of that
qualifying regulatory provision.

(5) Subsection (6) applies to any report in respect of the reporting period
mentioned in section 23(7)(c).

(6) 40The report must include an assessment of the extent to which the interim target
has been met.

(7) Subsection (8) applies to any report in respect of the reporting period
mentioned in section 23(7)(e).

(8) The report must include an assessment of the extent to which the business
impact target has been met.

25 Appointment of body to verify assessments and lists in reports

(1) The Secretary of State must appoint an independent body to verify—

(a) 5the assessment to be included in a report by virtue of section 23(3)(b),
and

(b) that all of the regulatory provisions in a list included in a report by
virtue of section 23(3)(f) are regulatory provisions (as defined in section
22(3)) which—

(i) 10have come into force or ceased to be in force during the
reporting period in respect of which the report is made, and

(ii) do not fall within section 23(3)(a).

(2) The body appointed under this section must publish a statement recording any
verification made by virtue of subsection (1)(b).

(3) 15The appointment of the body must be made before the date on which a
business impact target is published in relation to the relevant period.

(4) The appointment of the body must be for the duration of the relevant period.

(5) “Independent body” means a body which, in the opinion of the Secretary of
State, is independent of the Secretary of State.

(6) 20The body appointed under this section must have expertise in assessing the
likely economic impact of regulation on business activities (including activities
carried on by smaller scale businesses or voluntary or community bodies).

(7) Subsection (1)(b) is to be read in accordance with section 23(11).

26 Amending the business impact target etc

(1) 25Before the end of the relevant period the Secretary of State may amend one or
more of—

(a) the business impact target;

(b) the interim target;

(c) the determination under section 22(2);

(d) 30the methodology to be used for assessing the economic impact
mentioned in section 21(1)(a).

(2) Section 21(6) applies when amending the thing mentioned in subsection (1)(a)
or (c).

(3) If the Secretary of State amends any of the things mentioned in subsection (1)
35the Secretary of State must—

(a) publish the thing as amended,

(b) amend any report already published so that it takes account of any
amendments, and

(c) lay the thing as amended and any amended report before Parliament.

(4) 40The requirements in sections 23(2) and (3), 24 and 25(2) apply in relation to an
amended report.

27 Sections 21 to 25 etc: interpretation

(1) This section applies for the purposes of sections 21 to 25 and this section.

(2) “Business activities” means any activities carried on—

(a) by a business for the purposes of the business, or

(b) 5by a voluntary or community body for the purposes of the body.

(3) References to a business or a voluntary or community body do not include a
business or a voluntary or community body which—

(a) is controlled by a public authority, or

(b) is acting on behalf of a public authority in carrying out the activities.

(4) 10The Secretary of State must publish a statement as to how it is to be determined
whether a business or a voluntary or community body is controlled by a public
authority.

(5) Each of the following is a “voluntary or community body”—

(a) a trade union;

(b) 15an unincorporated body which does not distribute any surplus it makes
to its members;

(c) a charity;

(d) a company limited by guarantee which does not distribute any surplus
it makes to its members;

(e) 20a registered society within the meaning given by section 1 of the Co-
operative and Community Benefit Societies Act 2014;

(f) a society registered or deemed to be registered under the Industrial and
Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));

(g) a community interest company;

(h) 25a charitable incorporated organisation within the meaning of Part 11 of
the Charities Act 2011 or within the meaning of the Charities Act
(Northern Ireland) 2008 (c. 12 (N.I.));

(i) a Scottish charitable incorporated organisation within the meaning of
Chapter 7 of Part 1 of the Charities and Trustee Investment (Scotland)
30Act 2005 (asp 10)2005 (asp 10).

(6) In this section—

• “public authority” has the same meaning as in the Freedom of
  Information Act 2000 (see section 3 of that Act); and

• “trade union” has the meaning given by section 1 of the Trade Union and
  35Labour Relations (Consolidation) Act 1992 or Article 3 of the Industrial
  Relations (Northern Ireland) Order 1992 (S.I. 1992/807 (N.I. 5)S.I. 1992/807 (N.I. 5)).

Secondary legislation: duty to review

28 Duty to review regulatory provisions in secondary legislation

(1) This section applies where—

(a) 40an Act confers a power or duty on a Minister of the Crown to make
secondary legislation, and

(b) the Minister exercises the power or duty so as to—

(i) make regulatory provision in relation to any qualifying activity
(see sections 29 and 32), or

(ii) amend regulatory provision made in relation to any qualifying
activity.

(2) The Minister must—

(a) make provision for review in the secondary legislation in which the
5regulatory provision is made (see section 30), or

(b) publish a statement that it is not appropriate in the circumstances to
make provision for review in that legislation (see section 31).

(3) This section does not apply if or to the extent that the power or duty is to be
exercised so as to—

(a) 10make or amend—

(i) provision imposing, abolishing or varying any tax, duty, levy or
other charge, or

(ii) provision in connection with provision falling within sub-
paragraph (i);

(b) 15make or amend provision in connection with procurement;

(c) make or amend provision in connection with the giving of grants or
other financial assistance by or on behalf of a public authority;

(d) make or amend provision which is to cease to have effect before the end
of the period of 5 years beginning with the commencement date; or

(e) 20make or amend provision which is subject to review by virtue of
existing provision in the secondary legislation.

(4) In this section and section 29 “public authority” has the same meaning as in the
Freedom of Information Act 2000 (see section 3 of that Act).

29 Section 28(1)(b): interpretation

(1) 25This section applies for the purposes of section 28(1)(b).

(2) “Qualifying activity” means any activity carried on—

(a) by a business for the purposes of the business, or

(b) by a voluntary or community body for the purposes of the body.

(3) For the purposes of subsection (2) the references to a business or a voluntary or
30community body do not include a business or a voluntary or community body
which—

(a) is controlled by a public authority, or

(b) is acting on behalf of a public authority in carrying out the activity.

(4) The Secretary of State must publish a statement as to how it is to be determined
35whether a business or a voluntary or community body is controlled by a public
authority.

(5) “Voluntary or community body” has the meaning given in section 27.

30 Section 28(2)(a): “provision for review”

(1) This section applies for the purposes of section 28(2)(a).

(2) 40“Provision for review”, in relation to any regulatory provision, is provision
requiring the Minister to—

(a) carry out a review of the regulatory provision, and

(b) publish a report setting out the conclusions of the review.

(3) A review of any regulatory provision which implements an EU obligation or
any other international obligation of the United Kingdom must have regard to
how the obligation is implemented in the other Member States or countries
which are subject to the obligation.

(4) 5A report must, in particular—

(a) set out the objectives intended to be achieved by the regulatory
provision,

(b) assess the extent to which those objectives are achieved,

(c) assess whether those objectives remain appropriate, and

(d) 10if those objectives remain appropriate, assess the extent to which they
could be achieved in another way which involves less onerous
regulatory provision.

(5) The first report must be published before the end of the period of 5 years
beginning with the commencement date.

(6) 15Subsequent reports must be published at intervals not exceeding 5 years.

31 Section 28(2)(b): appropriateness of making provision for review

(1) This section applies for the purposes of section 28(2)(b).

(2) The circumstances in which the Minister may determine that it is not
appropriate to make provision for review include those in which—

(a) 20a review would be disproportionate taking into account the economic
impact of the regulatory provision on the qualifying activity, and

(b) a review would be undesirable for particular policy reasons (such as
there being an exceptionally high need for certainty in the longer term).

(3) The Secretary of State may publish guidance about the factors to be taken into
25account in determining whether it is appropriate to make provision for review.

(4) The Minister must have regard to any guidance.

32 Sections 28 to 31 etc: supplementary

(1) This section applies for the purposes of sections 28 to 31 and this section.

(2) “Commencement date” means the date on which the secondary legislation
30making or amending the regulatory provision comes into force for any
purpose.

(3) “Minister of the Crown” has the same meaning as in the Ministers of the Crown
Act 1975.

(4) “Regulatory provision”, in relation to any qualifying activity, means—

(a) 35provision imposing requirements, restrictions or conditions, or setting
standards, in relation to the activity, or

(b) provision which relates to the securing of compliance with, or the
enforcement of, requirements, restrictions, conditions or standards
which relate to the activity.

(5) 40But where any of section 30(2), (3), (4)(a) or 31(2) applies by virtue of section
28(1)(b)(ii), the references to regulatory provision are to the regulatory
provision as amended by the secondary legislation made by the Minister.