Financial Guidance and Claims Bill [HL]

Explanatory Notes

Legal background

Single Financial Guidance Body

16 At present Government-sponsored pension guidance, money guidance and debt advice is currently provided by the Money Advice Service (established under Part 1 of the Financial Services and Markets Act 2000), the Pensions Advisory Service (which is incorporated as a not-for-profit company limited by guarantee) and the Department for Work and Pensions under the ‘Pension Wise’ banner (under Part 20A of the Financial Services and Markets Act 2000).

Claims Management Services

17 At present the functions of the claims management regulator are carried out by the Secretary of State for Justice (through officials at the Claims Management Regulation Unit), under Part 2 of the Compensation Act 2006 1 (and secondary legislation made under it). These provisions will be repealed, as part of the transfer of functions.

18 The Financial Services and Markets Act 2000 sets out the legislative basis and remit of the Financial Conduct Authority. It provides the legislative framework for the Authority to authorise entities undertaking "regulated activities" and "controlled activities". The clauses in this Bill amend the 2000 Act, and provide for certain requirements and powers on the Financial Conduct Authority and the Secretary of State, to enable the transfer of regulation from the Ministry of Justice to the Financial Conduct Authority. The clauses will be supplemented by secondary legislation made under powers in the 2000 Act.

19 Complaints by consumers about the service provided by regulated claims management companies will also be transferred from the Legal Ombudsman to the Financial Ombudsman Service. The clauses will also permit the Secretary of State to put in place a transfer scheme for staff, assets and liabilities of the Claims Management Regulation Unit to the Financial Conduct Authority.


Prepared 22nd June 2017