Charities (Protection and Social Investment) Bill [HL]

second
marshalled
list of Amendments
to be moved
in GRAND COMMITTEE

[Amendments marked * are new or have been altered]

Clause 8

LORD HOPE OF CRAIGHEAD

6

Page 6, line 38,
after “unwilling)” insert—

“(a)   
in subsection (1)(a) after “unwilling” insert “or unable”;

(b)   ”

Clause 9

BARONESS HAYTER OF KENTISH TOWN

LORD WATSON OF INVERGOWRIE

7

Page 7, line 21,
at end insert—

“Case K

P has been found guilty of a sexual offence or has been placed on
the sex offenders register.”

BARONESS BARKER

LORD WALLACE OF SALTAIRE

8

Page 8, leave out lines 26 and 27

LORD WATSON OF INVERGOWRIE

BARONESS HAYTER OF KENTISH TOWN

 


The above-named Lords give notice of their intention to oppose the Question that Clause 9
stand part of the Bill.

Clause 10

LORD HOPE OF CRAIGHEAD

9

Page 10, line 43,
leave out “privy to” and insert “participated in”

BARONESS BARKER

LORD WALLACE OF SALTAIRE

10

Page 11, leave out lines 9 to 13

BARONESS HAYTER OF KENTISH TOWN

LORD WATSON OF INVERGOWRIE

11

Page 11, line 29,
at end insert—

“( )   The Charity Commission may by order under subsection (1)
disqualify all trustees of a charity where it has sufficient reason to
believe there is a collective failure of all trustees to ensure the safety
and protection of children who are direct beneficiaries of the
charity.”

After Clause 12

BARONESS HAYTER OF KENTISH TOWN

LORD WATSON OF INVERGOWRIE

12

Insert the following new Clause—

“Disposal of assets

Charities may not, and may not be compelled to, use or dispose of their
assets in a way which is inconsistent with their charitable purposes.”

13

Insert the following new Clause—

“Regulation of fundraising

(1)     All fundraising charities must be members of the Fundraising Standards
Board and abide by their Code of Fundraising Practice.

(2)     In section 64A of the Charities Act 1992, as inserted by section 69 of the
Charities Act 2006 (reserve power to control fund-raising by charitable

institutions)—

(a)   in the title omit “Reserve”;

(b)   
in subsection (1) for “may” substitute “must”.”

BARONESS HAYTER OF KENTISH TOWN

LORD WATSON OF INVERGOWRIE

LORD LEA OF CRONDALL

14

Insert the following new Clause—

“Power to make representations

(1)     A charity may undertake political campaigning or political activity in the
context of supporting the delivery of its charitable purposes.

(2)     A charity may campaign to ensure support for, or to oppose, a change in
the law, policy or decisions of central government, local authorities or other
public bodies.”

LORD LEA OF CRONDALL

15

Insert the following new Clause—


“Charity Commission annual report to refer to principles of best regulatory
practice

(1)     Schedule 1 to the Charities Act 2011 is amended as follows.

(2)     
In paragraph 11(c), after “16)” insert “including the extent to which, in its
opinion, it acted in a proportionate, accountable, consistent, transparent
and targeted manner (see section 16(4))”.”

LORD BEW

15A


Insert the following new Clause—

“Damages for torts by trustees or their employees

Damages for torts by trustees of unincorporated charities or their employees

(1)     The Charities Act 2011 is amended as follows.

(2)     After section 284 (when and how section 282 resolution takes effect)

insert—

“284A           Damages for torts by trustees or their employees

(1)     
This section applies where—

(a)   a trustee of an unincorporated charity is liable in tort by
reason of his conduct in his capacity as a trustee of that
charity; or

(b)   a person employed by a trustee or trustees of an
unincorporated charity is liable in tort by reason of his
conduct in the course of that employment.

(2)     Where this section applies, a person entitled to damages for the tort
shall be entitled to recover those damages from the assets of the
charity.

(3)     Subsection (2) shall not affect the liability of any trustee, employee,
or any other person.

(4)     Where a claim is made under subsection (2), the provisions of the
Civil Liability (Contribution) Act 1978 shall apply as if the charity
had legal personality.

(5)     Where a claim is made under subsection (2), or a contribution is
claimed from the assets of a charity under subsection (4), the charity
may be named as a party and may be represented by its trustees or
such other person as may be appointed by the court in any legal
proceedings.””

BARONESS PITKEATHLEY

15B

Insert the following new Clause—


“Review of Charity Commission’s funding arrangements


The Secretary of State must order a review of the Charity Commission’s
funding arrangements and look into different options for funding.”

Clause 13

BARONESS BARKER

LORD WALLACE OF SALTAIRE

16

Page 16, line 10,
leave out “both” and insert “primarily”

LORD BORWICK

LORD HODGSON OF ASTLEY ABBOTTS

17

Page 16, line 11, leave out “directly”

BARONESS BARKER

LORD WALLACE OF SALTAIRE

18

Page 16, line 11,
leave out “and” and insert “while also”

LORD HODGSON OF ASTLEY ABBOTTS

18A

Page 16
, leave out line 11 and insert—

“(a)   
furthering one or more of the charity’s purposes in whole or
in part; and”

18B

Page 16, line 27,
at end insert—

“( )     A relevant act of a charity may be carried out with a view to

furthering one or more of the charity’s purposes in whole or in part
for the purposes of this section even where the relevant act may not
exclusively further one or more of the charity’s purposes.”

LORD LEA OF CRONDALL

18C

Page 17, line 8,
at end insert—

“( )   privately funded educational institutions, except
universities;”

BARONESS BARKER

LORD WALLACE OF SALTAIRE

19

Page 17, line 18,
at end insert “including, where it is reasonable, from beneficiaries
and other stakeholders”

LORD CROMWELL

LORD HOPE OF CRAIGHEAD

20

Page 17, line 18,
at end insert—

“( )   consider whether the social investment concerned is subject
to the same regulation as commercial investments that are
undertaken in regulated financial markets and, if not,
whether it would nevertheless be appropriate to proceed
with it;

( )   consider whether there is a conflict between the investment
vehicles that are on offer and, if so, how it should be

resolved in the interests of best furthering the charity’s
purposes;”

LORD HODGSON OF ASTLEY ABBOTTS

20A

Page 17, line 22,
at end insert “having had regard to the degree to which the

relevant act is expected to further one or more of the charity’s purposes in whole
or in part, and the expected financial return”

BARONESS BARKER

LORD WALLACE OF SALTAIRE

21

Page 17, line 24,
leave out “social”

22

Page 17, line 24,
at end insert “and make this review publicly available, including
an assessment of how this use of funds furthers the charity’s purpose”

LORD HODGSON OF ASTLEY ABBOTTS

22A

Page 17, line 38,
at end insert—

“292D           Marketing of social investments

(1)     Any financial promotion which is communicated by a charity shall
not be subject to the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005.

(2)     The Treasury may by regulations set out rules for the
communication of financial promotions by charities.

(3)     
In making any such regulations, the Treasury shall have regard to—

(a)   the desirability of creating rules which are proportionate to
the nature, scale and capacity of different charities and
which are easy to understand and follow;

(b)   the desirability of creating rules which support the growth,
development and financing of charities and which are
enabling and facilitative;

(c)   the desirability of facilitating, where appropriate, direct
investment on the part of consumers into charities,
including charities which operate locally to the consumer;

(d)   the desirability of consistency of approach in the regulatory
treatment of communications made by different forms of
charities;

(e)   the differing expectations that consumers may have in
relation to different kinds of investment or other transaction
and, in particular, the fact that many when investing in
charities do so for a variety of non-financial reasons; and

(f)   the desirability, where appropriate, of the Financial
Conduct Authority exercising its functions in a way that
recognises differences in the nature of, and objectives of,
charities as compared to other organisations which are
subject to the requirements of the Financial Services and
Markets Act 2000.”

After Clause 13

LORD HODGSON OF ASTLEY ABBOTTS

[In substitution for Amendment 23]

22B*

Insert the following new Clause—

“Appeals and applications to Charity Appeal Tribunal

(1)     The Charities Act 2011 is amended as follows.

(2)     For section 319 (appeals: general) substitute—

“319 Appeals: general

(1)     Except in the case of a reviewable matter (see section 322) an appeal
may be brought to the Tribunal against any decision, order or
direction made by the Commission or any decision on the part of
the Commission not to make any decision, order or direction.

(2)     
Such an appeal may be brought by the following—

(a)   the Attorney General;

(b)   the charity trustees of the charity subject to the relevant
decision, order or direction;

(c)   (if a body corporate) the charity subject to the relevant
decision, order or direction;

(d)   any other person who is the subject of the relevant decision,
order or direction or who is significantly interested in and
affected by the relevant decision, order or direction.

(3)     The Commission is to be the respondent to such an appeal.

(4)     
In determining such an appeal the Tribunal—

(a)   must consider afresh the legal decision, order, direction or
decision not to act (as the case may be), and

(b)   may take into account evidence which is not available to the
Commission.

(5)     
The Tribunal may—

(a)   dismiss the appeal; or

(b)   if it allows the appeal, exercise any of the following

powers—

(i)   to quash (in whole or in part) the decision, order,
direction and (if appropriate) remit the matter to the
Commission;

(ii)   to substitute for the decision, order or direction any
other decision, order or direction which could have
been made or given by the Commission;

(iii)   to add to the decision, order or direction anything
which could have been contained in a decision,
order or direction of the Commission;

(iv)   to give such direction to the Commission as it
considers appropriate; and

(v)   where appropriate, to make any decision, order or
direction which the Commission could have made.”

(3)     For section 321(2) substitute—

“(2)     
Such an application may be brought by—

(a)   the Attorney General;

(b)   the charity trustees of the charity subject to the relevant
reviewable matter;

(c)   (if a body corporate) the charity subject to the relevant
reviewable matter;

(d)   any other person who is the subject of the relevant
reviewable matter or who is significantly interested in and
affected by the relevant reviewable matter.”

(4)     For section 323 (remission of matters to Commission) substitute—

“323 Remission of matters to Commission


The reference in section 319(5)(i) to “remit a matter to the

Commission” means the power to remit the matter—

(a)   generally, or

(b)   for determination in accordance with a finding made or
direction given by the Tribunal.”

(5)     Omit section 324 (power to amend provisions relating to appeals and
applications to Tribunal).

(6)     Omit Schedule 6 (appeals and applications to Tribunal).”

23

[Withdrawn]

24

[Withdrawn]

25

[Withdrawn]

Clause 14

BARONESS BARKER

LORD WALLACE OF SALTAIRE

26

Page 18, line 6,
at end insert—

“( )     The Chancellor of the Exchequer and the Minister for the Cabinet Office
must carry out a review into the operation of this Act as it relates to social

investment, including—

(a)   the effectiveness of the social investment market;

(b)   public understanding of how funds are used by charities for the
purposes of investment;

(c)   the interaction between grant-making and social investment.”

27

Page 18, line 11,
at end insert—

“( )   any other areas deemed relevant by the Minister”

LORD WATSON OF INVERGOWRIE

BARONESS HAYTER OF KENTISH TOWN

28

Page 18, line 14,
leave out “5” and insert “3”

29

Page 18, line 15,
leave out “5” and insert “3”

Prepared 26th June 2015