Financial Guidance and Claims Bill (HL Bill 1)

Financial Guidance and Claims BillPage 20

Delegation

10 (1) The single financial guidance body may delegate any function conferred on
it to—

(a) a committee,

(b) 5a member, or

(c) an employee.

(2) A committee may delegate any function conferred on it to—

(a) a sub-committee,

(b) a member of the committee,

(c) 10a member of the single financial guidance body, or

(d) an employee of the single financial guidance body.

Procedure etc

11 (1) The single financial guidance body may regulate its own procedures
(including quorum) and the procedures of its committees and sub-
15committees.

(2) The single financial guidance body’s procedures must include
arrangements for dealing with conflicts of interests of members, employees
and members of committees and sub-committees, which must oblige a
person who has or may have a conflict of interest—

(a) 20to declare any financial or other personal interest relevant to the
exercise of a function, and

(b) to withdraw from the exercise of the function, unless the single
financial guidance body directs otherwise, being satisfied that the
interest will not influence the exercise of the function.

25For the meaning of “conflict of interest” in this Schedule, see paragraph 4(3).

(3) The single financial guidance body must publish details of its procedures
and the procedures of its committees and sub-committees.

(4) The single financial guidance body must make arrangements for the keeping
of proper records—

(a) 30of its proceedings,

(b) of the proceedings of its committees and sub-committees,

(c) of anything done by a person to whom functions have been
delegated (see paragraph 10).

Validity of acts

12 35A defect in appointment does not affect the validity of things done by a
member of the single financial guidance body.

Authentication of seal

13 (1) The application of the single financial guidance body’s seal must be
authenticated by the signature of—

(a) 40a member of the single financial guidance body, or

(b) some other person who has been authorised by the single financial
guidance body for that purpose (whether generally or specifically).

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(2) A document appearing to be duly sealed or signed on behalf of the single
financial guidance body is to be received in evidence and, unless the
contrary is proved, is to be taken to be duly signed or sealed.

(3) This paragraph does not apply to Scotland.

5Reports and accounts

14 (1) As soon as reasonably practicable after the end of each financial year, the
single financial guidance body must send to the Secretary of State a report
on the exercise of the single financial guidance body’s functions during that
year.

(2) 10The report must include—

(a) a report on the proceedings of the single financial guidance body
during the year, and

(b) such other information as the Secretary of State may direct.

(3) On receiving the report, the Secretary of State must lay it before Parliament.

(4) 15The single financial guidance body must—

(a) keep proper accounting records, and

(b) prepare a statement of accounts in respect of each financial year.

(5) The statement must be in such form as the Secretary of State may direct.

(6) The single financial guidance body must send a copy of the statement of
20accounts to—

(a) the Secretary of State, and

(b) the Comptroller and Auditor General,

within the time period directed by the Secretary of State.

(7) The Comptroller and Auditor General must—

(a) 25examine, certify and report on the statement of accounts, and

(b) send a copy of the report to the Secretary of State.

(8) The Secretary of State must lay before Parliament the statement of accounts
and the report of the Comptroller and Auditor General.

(9) In this paragraph, “financial year” means—

(a) 30the period beginning with the day on which this Schedule comes into
force and ending with the following 31st March, and

(b) every subsequent period of 12 months ending with 31st March.

Section 1

SCHEDULE 2 Transfer schemes under section 1

35Power to make transfer schemes

1 (1) The Secretary of State may make one or more schemes providing for the
transfer of designated property, rights and liabilities of the Secretary of State
and the Pensions Advisory Service Limited to the single financial guidance
body.

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(2) The Secretary of State may make one or more schemes providing for the
transfer of designated property, rights and liabilities of the consumer
financial education body to the single financial guidance body.

(3) The rights and liabilities that may be transferred by a scheme include rights
5and liabilities under a contract of employment.

(4) For that purpose—

(a) an individual who holds employment in the civil service of the State
is to be treated as employed by virtue of a contract of employment;
and

(b) 10the terms on which the individual holds that employment are to be
regarded as constituting the terms of that contract.

(5) In this Schedule—

  • “designated” means specified in, or determined in accordance with, the
    scheme;

  • 15“property” includes interests of any description.

Contents of a scheme

2 (1) A scheme under this Schedule may, in particular, make provision—

(a) for anything done by or in relation to the transferor in connection
with any property, rights or liabilities transferred by the scheme to
20be treated as done, or to be continued, by or in relation to the
transferee;

(b) for references (however expressed) to the transferor in any
agreement, instrument or other document relating to property,
rights or liabilities transferred by the scheme to be treated as
25references to the transferee;

(c) about the continuation of legal proceedings;

(d) for transferring property, rights or liabilities which could not
otherwise be transferred or assigned;

(e) for transferring property, rights or liabilities irrespective of any
30requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of
forfeiture, right to compensation or other similar right from arising
or becoming exercisable as a result of the transfer of property, rights
or liabilities;

(g) 35for dispensing with any formality in relation to the transfer of
property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising,
after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) 40for creating rights, or imposing liabilities, in connection with
property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind,
or for a purpose, specified in or determined in accordance with the
scheme;

(l) 45that is the same as or similar to provision made by the Transfer of
Undertakings (Protection of Employment) Regulations 2006 (S.I.
2006/246), if those Regulations do not apply to the transfer.

(2) Sub-paragraph (1)(b) does not apply to references in any of the following—

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(a) an Act of Parliament;

(b) an Act of the Scottish Parliament;

(c) an Act or Measure of the National Assembly for Wales;

(d) Northern Ireland legislation;

(e) 5subordinate legislation within the meaning of the Interpretation Act
1978 (see section 21(1) of that Act);

(f) an instrument made under legislation of the kind mentioned in
paragraph (b), (c) or (d).

(3) In sub-paragraph (1)(b), “agreement” includes an agreement that is not in
10writing.

Modifications to a scheme

3 (1) The Secretary of State may modify a scheme made under this Schedule; but
a modification relating to a transfer that has taken effect may be made only
with the agreement of the person (or persons) affected by the modification.

(2) 15A modification takes effect from such date as the Secretary of State may
specify (which may be the date when the original scheme came into effect).

Supplementary

4 A scheme may—

(a) contain incidental, supplementary and consequential provisions;

(b) 20make transitory or transitional provision or savings;

(c) make different provision for different purposes;

(d) make provision subject to exceptions.

Section 13

SCHEDULE 3 Minor and consequential amendments relating to Part 1

25Public Records Act 1958 (c. 51)

1 In Schedule 1 to the Public Records Act 1958 (definition of public records),
in paragraph 3, in Part 2 of the Table, at the appropriate place insert—

  • “The single financial guidance body.”

Parliamentary Commissioner Act 1967 (c. 13)

2 30In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation), at the appropriate place insert—

  • “The single financial guidance body.”

House of Commons Disqualification Act 1975 (c. 24)

3 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
35(bodies of which all members are disqualified), at the appropriate place
insert—

  • “The single financial guidance body.”

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Northern Ireland Assembly Disqualification Act 1975 (c. 25)

4 In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (bodies of which all members are disqualified), at the appropriate
place insert—

  • 5“The single financial guidance body.”

Financial Services and Markets Act 2000 (c. 8)

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

6 In section 1A(6) (functions of the FCA), after paragraph (c) insert—

(cza) the Financial Guidance and Claims Act 2017,”.

7 10In section 1B (FCA’s general duties), omit subsection (7A).

8 In section 1C (the consumer protection objective), in subsection (2), omit
paragraph (g).

9 In section 1M (FCA’s general duty to consult), omit the words “and its duties
under section 333O”.

10 15In section 1S (reviews), in subsection (3) omit the words “or its duties under
section 333O(1) and (2)(a)”.

11 In section 3R (arrangements for provision of services), in subsection (4), for
paragraph (a) substitute—

(a) the single financial guidance body (see Part 1 of the Financial
20Guidance and Claims Act 2017),”.

12 Omit section 3S (the consumer financial education body).

13 In section 137FB (FCA general rules: disclosure of information about the
availability of pensions guidance), in subsection (4), for the definition of
“pensions guidance” substitute—

  • 25““pensions guidance” means information or guidance provided by any
    person in pursuance of the single financial guidance body’s pensions
    guidance function (see section 2 of the Financial Guidance and
    Claims Act 2017);”.

14 In section 138F (notification of rules), in subsection (2) (exceptions to
30notification)—

(a) after “, 137FBA” insert “, 137SA”;

(b) after “, 137SA” insert “, 137SB”;

(c) omit “, 333Q, 333R”.

15 (1) Section 138I (consultation on rules by FCA) is amended as follows.

(2) 35In subsection (6) (exception to requirement to carry out cost benefit
analysis)—

(a) after paragraph (ab) insert—

(ac) section 137SA;”;

(b) after paragraph (ac) insert—

(ad) 40section 137SB;”;

(c) omit paragraphs (ca), (cb) and (e).

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(3) In subsection (10) (exception to requirement to consult PRA before making
rules)—

(a) after “137FBA” insert “, 137SA”;

(b) after “, 137SA” insert “, 137SB”;

(c) 5omit “, 333Q, 333R”.

16 In section 138J (consultation on rules by PRA), in subsection (6), omit
paragraph (e).

17 In section 139A (power of FCA to give guidance), omit subsection (1A).

18 In section 140A (competition scrutiny: interpretation), in subsection (1), in
10paragraph (a) of the definition of “regulating provisions”—

(a) in sub-paragraph (ii), omit “or 333P(9)”;

(b) omit sub-paragraphs (v) and (vi).

19 In section 168 (appointment of persons to carry out investigations), in
subsection (2)(a), omit “or 333G”.

20 15Omit Part 20A (sections 333A to 333R; pensions guidance).

21 In section 429 (Parliamentary control of statutory instruments), in subsection
(2), omit “, 333C, 333R”.

22 (1) Schedule 1ZA (the Financial Conduct Authority) is amended as follows.

(2) In paragraph 8 (arrangements for discharging functions)—

(a) 20in sub-paragraph (3)—

(i) in paragraph (c)(i), for “, 312J or 333K” substitute “or 312J”;

(ii) omit paragraph (e);

(b) after sub-paragraph (3), insert—

(3A) In exercising its functions under sections 6(2) and 7 of the
25Financial Guidance and Claims Act 2017 (approving and
reviewing standards set by single financial guidance
body), the FCA must act through its governing body.”;

(c) in sub-paragraph (4), omit “or 333P(9)”.

(3) In paragraph 11 (annual report), in sub-paragraph (1)—

(a) 30omit paragraph (hb);

(b) omit the “and” at the end of paragraph (i), and after that paragraph
insert—

(ia) how, in its opinion, it has complied with its duties
under sections 6(2) and 7 of the Financial Guidance
35and Claims Act 2017, and”;

(4) In paragraph 21 (financial penalty scheme), in sub-paragraph (2)—

(a) at the end of paragraph (c) insert “and”;

(b) omit paragraph (e) (and the word “and” immediately preceding it).

(5) In paragraph 23 (fees)—

(a) 40in sub-paragraph (1)—

(i) after “sections” insert “137SA,”;

(ii) after “137SA” insert “, 137SB”;

(iii) omit “, 333Q, 333R”;

(b) in sub-paragraph (2ZA)—

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(i) omit paragraph (a) (and the word “and” immediately
following it);

(ii) in paragraph (b), for “sections 333R and 333T” substitute
“section 333T”;

(iii) 5after paragraph (b), insert , and

(c) its functions under section 137SA.”;

(iv) in paragraph (c) (inserted by sub-paragraph (iii)), for “section
137SA” substitute “sections 137SA and 137SB”.

23 Omit Schedule 1A (further provision about the consumer financial
10education body).

Freedom of Information Act 2000 (c. 36)

24 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities: general), at the appropriate place insert—

  • “The single financial guidance body.”

15Equality Act 2010 (c. 15)

25 In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general),
under the heading “Industry, business, finance etc”, at the appropriate place
insert—

  • “The single financial guidance body.”

20Financial Services Act 2010 (c. 28)

26 The Financial Services Act 2010 is amended as follows.

27 In section 2 (enhancing public understanding of financial matters etc), omit
subsections (1) and (6).

28 Omit Schedule 1 (further provision about the consumer financial education
25body).

Financial Services Act 2012 (c. 21)

29 The Financial Services Act 2012 is amended as follows.

30 Omit section 45 and Schedule 15 (the consumer financial education body).

31 In section 85 (relevant functions in relation to complaints scheme)—

(a) 30in subsection (2)(a), after “legislative functions” insert “and its
standards review functions”;

(b) in subsection (4)—

(i) in paragraph (c)(i), for “, 312J or 333K” substitute “or 312J”;

(ii) in paragraph (e), omit “or 333P(9)”;

(iii) 35omit paragraph (f).

(c) After subsection (4) insert—

(4A) For the purposes of subsection (2)(a), the FCA’s standards
review functions are the FCA’s functions under sections 6(2)
and 7 of the Financial Guidance and Claims Act 2017
40(approving and reviewing standards set by single financial
guidance body).”

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Pension Schemes Act 2015 (c. 8)

32 In Schedule 3 to the Pension Schemes Act 2015 (pensions guidance), omit
paragraphs 2 to 5, 8(b), 9 to 11, 13 to 15 and 17.

Bank of England and Financial Services Act 2016 (c. 14)

33 5In the Bank of England and Financial Services Act 2016, omit section 32
(amendments to section 333A of FSMA; pensions guidance).

Section 16

SCHEDULE 4 Regulation of claims management services: transfer schemes

Part 1 10Application and interpretation

1 This Schedule applies if the Treasury make an order under section 22(1B) of
the Financial Services and Markets Act 2000 which has the effect that an
activity—

(a) becomes a regulated activity for the purposes of that Act, and

(b) 15ceases to be a regulated service under Part 2 of the Compensation Act
2006 (see section 4(2)(e) of that Act).

2 In this Schedule—

  • “the FCA” means the Financial Conduct Authority;

  • “the FOS” means the body corporate which administers the
    20ombudsman scheme provided for in Part 16 of the Financial Services
    and Markets Act 2000 (see section 225 of that Act);

  • “the OLC” means the Office for Legal Complaints established by
    section 114 of the Legal Services Act 2007;

  • “the Regulator” means the person designated under section 5(1) of the
    25Compensation Act 2006 or, if no person is so designated, the
    Secretary of State.

Part 2 Transfer of property and staff from the Regulator to the FCA

Power of Secretary of State to make transfer schemes

3 30The Secretary of State may, with the consent of the FCA, make one or more
schemes for the transfer of property, rights and liabilities of the Regulator to
the FCA.

Transfer of property, rights and liabilities

4 The following provisions of this Part of this Schedule apply in relation to
35schemes under paragraph 3 (“transfer schemes”).

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5 The property, rights and liabilities which are the subject of a transfer scheme
are transferred in accordance with the provisions of the scheme on such day
as the scheme may specify.

6 The property, rights and liabilities that may be the subject of a transfer
5scheme include—

(a) any that would not otherwise be capable of being transferred or
assigned,

(b) rights and liabilities under a contract of employment, and

(c) amounts in respect of fees paid under the Compensation (Claims
10Management Services) Regulations 2006 (S.I. 2006/3322).

7 For the purpose of paragraph 6(b)

(a) an individual who holds employment in the civil service of the State
is to be treated as employed by virtue of a contract of employment,
and

(b) 15the terms on which the individual holds that employment are to be
regarded as constituting the terms of that contract.

Contents of a transfer scheme

8 (1) A transfer scheme may—

(a) provide for anything done before the transfer by or in relation to the
20Regulator in connection with any property, rights or liabilities
transferred by the scheme to be treated as having been done by or in
relation to the FCA;

(b) contain provision for the payment by the FCA of compensation to
the Regulator for costs incurred (before or after the transfer) in
25connection with the transfer or the exercise of functions in relation to
the regulation of claims management services;

(c) contain provision for the payment of compensation by the FCA to
any person whose interests are adversely affected by the transfer
scheme;

(d) 30make provision that is the same as or similar to provision made by
the Transfer of Undertakings (Protection of Employment)
Regulations 2006 (S.I. 2006/246), if those Regulations do not apply to
the transfer.

(2) An obligation of the FCA to make a compensation payment or to meet a
35liability transferred under provision in a transfer scheme is to be treated for
the purposes of paragraph 23 of Schedule 1ZA to the Financial Services and
Markets Act 2000 (fees) as a qualifying function conferred on the FCA under
that Act.

Supplementary

9 40A transfer scheme may—

(a) contain supplementary, incidental and consequential provision;

(b) make transitory or transitional provision or savings;

(c) make different provision for different purposes;

(d) make provision subject to exceptions.

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Modification of a transfer scheme

10 Subject to paragraph 11, the Secretary of State may, with the consent of the
FCA, modify a transfer scheme.

11 A modification relating to a transfer that has taken effect may be made only
5with the agreement of the person (or persons) affected by the modification.

12 A modification takes effect from such date as the Secretary of State may
specify, and that date may be the date when the original scheme came into
effect.

Part 3 10Transfer of property and staff from the OLC to the FOS

Power of OLC to make transfer schemes

13 The OLC may make one or more schemes for the transfer of property, rights
and liabilities of the OLC to the FOS.

14 A scheme made under paragraph 13 is not to be capable of coming into force
15unless it is approved by the Treasury and the Lord Chancellor.

15 The OLC may not submit a scheme to the Treasury or the Lord Chancellor
for approval under paragraph 14 without the consent of the FOS and the
FCA.

Power of Lord Chancellor to make transfer schemes

16 20Paragraph 17 applies if the OLC fails to make a scheme under paragraph 13
in circumstances where the Lord Chancellor considers that it is necessary for
such a scheme to be made.

17 The Lord Chancellor may, with the approval of the Treasury, the OLC, the
FOS and the FCA, make a scheme for the transfer of property, rights and
25liabilities of the OLC to the FOS.

Provision of information and assistance by OLC

18 The OLC must provide the Treasury and the Lord Chancellor with all such
information and other assistance as either of them may reasonably require
for the purposes of, or otherwise in connection with, the exercise of their
30powers under this Part of this Schedule.

19 Paragraph 18 is subject to any express restriction on disclosure imposed by
the Data Protection Act 1998 (ignoring any restriction which allows
disclosure if authorised by an enactment).

Transfer of property, rights and liabilities

20 35The following provisions of this Part of this Schedule apply in relation to
schemes under paragraph 13 or 17 (“transfer schemes”).

21 The property, rights and liabilities which are the subject of a transfer scheme
are transferred in accordance with the provisions of the scheme on such day
as the scheme may specify.