(a) an obligation of confidence owed by the person making the disclosure,
or

(b) any other restriction on the disclosure of the information (however
imposed).

(8) 5But nothing in this section authorises the making of a disclosure which—

(a) contravenes the Data Protection Act 1998, or

(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the
Investigatory Powers Act 2016.

(9) In this section, “a devolved authority” means—

(a) 10the Scottish Ministers,

(b) the Welsh Ministers, or

(c) the Department for Communities in Northern Ireland.

13 Minor and consequential amendments

Schedule 3 contains amendments that relate to this Part.

14 15Power to dissolve the single financial guidance body

(1) The Secretary of State may by regulations made by statutory instrument
provide for the dissolution of the single financial guidance body.

(2) The regulations may in particular make provision about—

(a) the transfer of the functions of the single financial guidance body to the
20Secretary of State or any other person;

(b) the transfer of property, rights or liabilities of the single financial
guidance body to the Secretary of State or any other person;

(c) the creation and extinguishment of interests, rights and liabilities, in
connection with provision made under paragraph (b);

(d) 25the payment by the Secretary of State or the single financial guidance
body of compensation to any person who suffers loss or damage as a
result of the dissolution.

(3) The regulations—

(a) may transfer rights and liabilities relating to employees, but

(b) 30may not affect the operation of the Transfer of Undertakings
(Protection of Employment) Regulations 2006 (S.I. 2006/246).

(4) The regulations may—

(a) amend or repeal any provision of this Part;

(b) make incidental, supplementary, consequential, transitional or saving
35provision.

(5) Subsection (4)(b) includes the power to amend any provision made by or
under—

(a) an Act of Parliament,

(b) an Act of the Scottish Parliament,

(c) 40a Measure or Act of the National Assembly for Wales, or

(d) Northern Ireland legislation.

(6) A statutory instrument containing regulations under this section may not be
made unless a draft of the instrument has been laid before and approved by a
resolution of each House of Parliament.

15 Interpretation of Part 1

(1) 5In this Part—

• the “FCA” means the Financial Conduct Authority;

• the “debt advice function” has the meaning given in section 2(5);

• the “money guidance function” has the meaning given in section 2(6);

• the “pensions guidance function” has the meaning given in section 2(4);

• 10“standards” means standards set under section 6;

• the “strategic function” has the meaning given in section 2(7);

• “SFGB delivery partner” means a person with whom arrangements are
  made under section 4(1), (2) or (3).

(2) In this Part, other than in section 1(7)(a) and paragraph 1(1) of Schedule 2,
15references to the Secretary of State are to be read as references to the Secretary
of State or the Treasury.

Part 2 Claims Management Services

16 Transfer to FCA of regulation of claims management services

(1) 20The Financial Services and Markets Act 2000 is amended as follows.

(2) In section 21 (restrictions on financial promotion)—

(a) in subsection (1)—

(i) the words from “to engage” to the end become paragraph (a),
and

(ii) 25at the end of that paragraph insert “, or

(b) to engage in claims management activity.”,

(b) after subsection (10) insert—

“(10A) “Engaging in claims management activity” means entering into
or offering to enter into an agreement the making or
30performance of which by either party constitutes a controlled
claims management activity.

(10B) An activity is a “controlled claims management activity” if—

(a) it is an activity of a specified kind,

(b) it is, or relates to, claims management services, and

(c) 35it is carried on in England or Wales.”, and

(c) after subsection (12) insert—

“(12A) Paragraph 25 of Schedule 2 applies for the purposes of
subsection (10B) with the references to section 22 in sub-
paragraph (3) of that paragraph being read as references to
40subsection (10B).”

(3) In section 22 (regulated activities)—

(a) after subsection (1A) insert—

“(1B) An activity is also a regulated activity for the purposes of this
Act if it is an activity of a specified kind which—

(a) is carried on by way of business in England or Wales,
5and

(b) is, or relates to, claims management services.”, and

(b) in subsection (3) for “subsection (1) or (1A)” substitute “subsections (1)
to (1B)”.

(4) In section 234C (complaints to the FCA by consumer bodies)—

(a) 10in subsection (1), after “financial services” insert “or of a market in
England and Wales for claims management services”, and

(b) in subsection (5)—

(i) in paragraph (a), at the end insert “(and “market in England and
Wales” is to be construed accordingly)”, and

(ii) 15in paragraph (b), after “financial services” insert “, or of a
market in England and Wales for claims management
services,”.

(5) In section 234I (FCA’s functions under Part 4 of the Enterprise Act 2002)—

(a) in subsection (2)(b), after “services” insert “or to the provision of claims
20management services in England and Wales”, and

(b) in subsection (6)(a), after “financial services” insert “or in England and
Wales of claims management services”.

(6) In section 234J(2) (FCA’s functions under the Competition Act 1998), after
“financial services” insert “or relate to the provision of claims management
25services in England and Wales”.

(7) In section 234M(1) (function of keeping market under review), after “services”
insert “and the market in England and Wales for claims management services”.

(8) In section 417(1) (definitions), at the appropriate place insert—

• ““regulated claims management activity” means activity of a kind
  30specified in an order under section 22(1B) (regulated activities:
  claims management services);”.

(9) After section 419 insert—

“419A Claims management services

(1) In this Act “claims management services” means advice or other
35services in relation to the making of a claim.

(2) In subsection (1) “other services” includes—

(a) financial services or assistance,

(b) legal representation,

(c) referring or introducing one person to another, and

(d) 40making inquiries,

but giving, or preparing to give, evidence (whether or not expert
evidence) is not, by itself, a claims management service.

(3) In this section “claim” means a claim for compensation, restitution,
repayment or any other remedy or relief in respect of loss or damage or

in respect of an obligation, whether the claim is made or could be
made—

(a) by way of legal proceedings,

(b) in accordance with a scheme of regulation (whether voluntary
5or compulsory), or

(c) in pursuance of a voluntary undertaking.

(4) The Treasury may by order provide that a claim for a specified benefit
is to be treated as a claim for the purposes of this section.

(5) The Treasury may specify a benefit under subsection (4) only if it
10appears to the Treasury to be a social security benefit, payable under
the law of any part of the United Kingdom, designed to provide
compensation for industrial injury.

419B Carrying on claims management activity in England or Wales

(1) The Treasury may by order make provision as to the circumstances in
15which a person is, or is not, to be treated as carrying on—

(a) a regulated claims management activity, or

(b) an activity of a kind specified in an order under section 21(10B),

in England or Wales.

(2) Subsections (2) to (5) of section 419 apply in relation to an order under
20subsection (1) as they apply in relation to an order under subsection (1)
of that section, but as if the references to regulated activities in
subsection (2) of that section were references to regulated claims
management activities or, as the case may be, to activities of a kind
specified in an order under section 21(10B).”

(10) 25In section 429 (parliamentary control of statutory instruments)—

(a) in subsection (1)(a) (orders subject to affirmative procedure), for “or
419” substitute “, 419 or 419B”,

(b) in subsection (4)—

(i) in paragraph (e), for “or (10)” substitute, “, (10) or (10B)”,

(ii) 30omit the “or” at the end of paragraph (f), and

(iii) after paragraph (g) insert “; or

(h) it adds one or more activities to those that are
controlled claims management activities for the
purposes of section 21.”, and

(c) 35after subsection (7) insert—

“(7A) An order to which, if it is made, subsection (7B) will apply is not
to be made unless a draft of the order has been laid before
Parliament and approved by a resolution of each House.

(7B) This subsection applies to an order under section 419A(4) if—

(a) 40it is the first order to be made, or to contain provisions
made, under that subsection; or

(b) it adds one or more benefits to those that are specified
benefits for the purposes of section 419A.”

(11) In Schedule 2 (regulated activities)—

(a) 45in paragraph 25 (order making power), in sub-paragraph (1)—

(i) in the opening words for “or (1A)” substitute “to (1B)”;

(ii) in paragraph (f) at the end insert “, including provision which
applies (with or without modification) provision in this Act or
other primary or subordinate legislation that relates to
investment activity or financial services to a regulated activity
5that does not relate to investment activity or financial services.”,
and

(b) in paragraph 26 (parliamentary control), in sub-paragraph (1) for “or
(1A)” substitute “to (1B)”.

(12) Schedule 4 contains provision about transfer schemes where an order is made
10under section 22(1B) of the Financial Services and Markets Act 2000 (inserted
by subsection (3)(a)).

(13) Schedule 5 contains transitional provision relating to this section.

17 Power of FCA to make rules restricting charges for claims management
services

(1) 15The Financial Services and Markets Act 2000 is amended as set out in
subsections (2) and (3).

(2) After section 137FBB insert—

“137FC FCA general rules: charges for claims management services

(1) The power of the FCA to make general rules includes power to make
20rules prohibiting authorised persons from—

(a) entering into a specified regulated claims management
agreement that provides for the payment by a person of charges
which, taken with charges payable under an agreement treated
by the rules as being connected with the regulated claims
25management agreement (if any), are specified charges, and

(b) imposing specified charges on a person in connection with the
provision of a service which is, or which is provided in
connection with, a specified regulated claims management
activity.

(2) 30The FCA must make rules by virtue of subsection (1) in relation to all
regulated claims management agreements, and all regulated claims
management activities, which concern claims in relation to financial
products or services.

(3) The rules must be made with a view to securing an appropriate degree
35of protection against excessive charges for the provision of a service
which is, or which is provided in connection with, a regulated claims
management activity.

(4) The rules may specify charges by reference to charges of a specified
class or description, or by reference to charges which exceed, or are
40capable of exceeding, a specified amount.

(5) In relation to an agreement entered into, or charge imposed, in
contravention of the rules, the rules may (amongst other things)—

(a) provide for the agreement, or obligation to pay the charge, to be
unenforceable or unenforceable to a specified extent;

(b) 45provide for the recovery of amounts paid under the agreement
or obligation;

(c) provide for the payment of compensation for any losses
incurred as a result of paying amounts under the agreement or
obligation.

(6) The provision that may be made under subsection (5) includes
5provision corresponding to that made by section 30 (enforceability of
agreements resulting from unlawful communications).

(7) In this section—

(a) “regulated claims management agreement” means an
agreement, the entering into or performing of which by either
10party is a regulated claims management activity, and

(b) “specified” means specified in the rules, but “specified amount”
means an amount specified in or determined in accordance with
the rules.”

(3) In section 138E(3) (contravention of rules which may make transaction void or
15unenforceable)—

(a) omit the “or” at the end of paragraph (b), and

(b) at the end of paragraph (c) insert “or

(d) rules made by the FCA under section 137FC.”

Part 3 20General

18 Extent

(1) This Act, other than the provisions mentioned in subsections (2) to (4), extends
to England and Wales, Scotland and Northern Ireland.

(2) In section 9—

(a) 25subsections (1) and (3) extend to England and Wales and Scotland;

(b) subsections (2) and (4) extend to Northern Ireland.

(3) Part 2 extends to England and Wales.

(4) Paragraph 25 of Schedule 3 extends to England and Wales and Scotland.

19 Commencement

(1) 30The following provisions come into force on the day this Act is passed—

(a) section 8(1) and (3);

(b) section 9;

(c) section 10;

(d) the following paragraphs of Schedule 3 (and section 13 so far as it
35relates to those paragraphs)—

(i) paragraph 5,

(ii) paragraph 14(a),

(iii) paragraph 15(1), (2)(a) and (3)(a), and

(iv) paragraph 22(1), (5)(a)(i) and 22(5)(b)(iii);

(e) 40section 16(13) and Schedule 5;

(f) this Part.

(2) The other provisions of this Act come into force on a day appointed by
regulations.

(3) Regulations may make transitional, transitory and saving provision in
connection with the coming into force of any provision of Part 1 or 2.

(4) 5Regulations under subsection (2) or (3) may make—

(a) incidental and supplementary provision, and

(b) different provision for different purposes.

(5) Regulations under subsection (2) or (3) are to be made by statutory instrument
by—

(a) 10the Secretary of State, in relation to any provision of Part 1, other than
section 11;

(b) the Treasury, in relation to section 11 and any provision of Part 2.

20 Short title

This Act may be cited as the Financial Guidance and Claims Act 2017.

SCHEDULES

Section 1

SCHEDULE 1 The single financial guidance body

Status

1 (1) 5The single financial guidance body is not to be regarded—

(a) as a servant or agent of the Crown, or

(b) as enjoying any status, immunity or privilege of the Crown.

(2) The members and employees of the single financial guidance body are not
to be regarded as Crown servants.

10Members: general

2 (1) The single financial guidance body is to consist of—

(a) a chair (who is to be a non-executive member of the body) appointed
by the Secretary of State,

(b) other non-executive members appointed by the Secretary of State,
15and

(c) executive members, appointed in accordance with paragraph 6.

(2) The Secretary of State and the non-executive members must ensure, so far as
practicable, that the number of non-executive members is at all times greater
than the number of executive members.

20Non-executive members: tenure

3 (1) The non-executive members hold and vacate office in accordance with the
terms of their appointment (subject to this Schedule).

(2) A non-executive member may resign by notice in writing to the Secretary of
State.

(3) 25The Secretary of State may remove a non-executive member from office by
notice if the Secretary of State is satisfied that the member—

(a) has a conflict of interest (see paragraph 4),

(b) has at any time been the subject of a bankruptcy order or has had his
or her estate sequestrated,

(c) 30has at any time made a composition or arrangement with, or granted
a trust deed for, his or her creditors,

(d) has at any time been convicted of any offence involving dishonesty
or deception,

(e) is unfit for office by reason of misconduct,

(f) 35has failed to comply with the terms of his or her appointment,

(g) has without reasonable excuse failed to discharge the functions of his
or her office, or

(h) is otherwise incapable of discharging, or unfit or unwilling to
discharge, the functions of his or her office.

5Non-executive members: conflicts of interest

4 (1) Before appointing a person to be a non-executive member, the Secretary of
State must be satisfied that the person does not have a conflict of interest.

(2) A non-executive member, or a person the Secretary of State proposes to
appoint as a non-executive member, must provide the Secretary of State
10with such information as the Secretary of State requires from the person in
order to determine whether the person has a conflict of interest (whether for
the purposes of sub-paragraph (1) or paragraph 3(3)(a)).

(3) In this Schedule, “conflict of interest”, in relation to a person, means a
financial or other interest which is likely to affect prejudicially the discharge
15by the person of his or her functions as a member or employee of the single
financial guidance body, or as a member of a committee or sub-committee of
the single financial guidance body.

Non-executive members: remuneration etc

5 (1) The single financial guidance body may—

(a) 20pay to the non-executive members such remuneration, and

(b) pay to or in respect of the non-executive members such sums by way
of or in respect of allowances and gratuities,

as the Secretary of State may determine.

(2) Where—

(a) 25a person whose term of office as a non-executive member has not
expired ceases to hold that office, and

(b) the Secretary of State thinks there are special circumstances that
make it right for the person to receive compensation,

the single financial guidance body may make a payment to the person of
30such amount as the Secretary of State may determine.

Executive members: appointment

6 (1) Before the date on which the single financial guidance body first starts to
provide services to members of the public, the Secretary of State must
appoint—

(a) 35a person to be the chief executive of the single financial guidance
body, and

(b) other persons to be the executive members of the body.

(2) Appointments of executive members (including the chief executive) made
on or after the date on which the single financial guidance body first starts
40to provide services to members of the public are to be made by the single
financial guidance body, with the approval of the Secretary of State.

Executive members: terms and conditions

7 (1) The executive members are to be employees of the single financial guidance
body.

(2) Executive members appointed under paragraph 6(1) are to be employed by
5the single financial guidance body on such terms and conditions, including
those as to remuneration, as the Secretary of State may determine.

(3) Executive members appointed under paragraph 6(2) are to be employed by
the single financial guidance body on such terms and conditions, including
those as to remuneration, as the body may determine, with the approval of
10the Secretary of State.

(4) The single financial guidance body must—

(a) pay to or in respect of the executive members such pensions,
allowances and gratuities, or

(b) provide and maintain for them such pension schemes (whether
15contributory or not),

as the body may determine, with the approval of the Secretary of State.

Other staff: appointment, terms and conditions

8 The single financial guidance body may appoint other employees on such
terms and conditions, including those as to remuneration and pension
20arrangements, as the single financial guidance body may determine.

Committees

9 (1) The single financial guidance body may—

(a) establish a committee for the purpose of discharging any of its
functions, and

(b) 25establish a committee for the purpose of giving advice to the body
about matters relating to the discharge of its functions.

(2) A committee may consist of or include persons who are neither members
nor employees of the single financial guidance body.

(3) But a committee that discharges any functions of the single financial
30guidance body, by virtue of sub-paragraph (1)(a) or paragraph 10, must
include at least one person who is either a member or an employee of the
single financial guidance body.

(4) Where a person who is neither a member nor an employee of the single
financial guidance body is a member of a committee, the body may pay to
35that person such remuneration and expenses as it may determine.

(5) A committee may establish a sub-committee.

(6) A sub-committee must include at least one person who is a member of the
committee that established it.

(7) A sub-committee that discharges any functions of the single financial
40guidance body must include at least one person who is either a member or
an employee of the single financial guidance body.