Financial Guidance and Claims Bill (HL Bill 1)

Financial Guidance and Claims BillPage 30

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

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

(b) 5rights and liabilities under a contract of employment.

Contents of a transfer scheme

23 (1) A transfer scheme may—

(a) provide for anything done before the transfer by or in relation to the
OLC in connection with any property, rights or liabilities transferred
10by the scheme to be treated as having been done by or in relation to
the FOS;

(b) contain provision for the payment by the FOS of compensation to the
OLC or the Regulator for costs incurred (before or after the transfer)
in connection with the transfer or the exercise of functions in relation
15to claims management services;

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

(d) make provision that is the same as or similar to provision made by
20the 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 FOS to make a compensation payment or to meet a
liability transferred under provision in a transfer scheme is to be treated for
25the purposes of section 234 of the Financial Services and Markets Act 2000
(industry funding) as a cost of its operation in relation to the compulsory
jurisdiction.

Supplementary

24 A transfer scheme may—

(a) 30contain 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.

Modification of a transfer scheme

25 35Subject to paragraphs 26 to 28, the OLC may modify a transfer scheme.

26 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.

27 A modification is not to be capable of coming into effect unless it is approved
by the Treasury and the Lord Chancellor.

28 40The OLC may not submit a scheme to the Treasury or the Lord Chancellor
for approval under paragraph 27 without the consent of the FOS and the
FCA.

29 A modification takes effect from such date as the OLC may specify, and that
date may be the date when the original scheme came into effect.

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Section 16

SCHEDULE 5 Regulation of claims management services: transitional provision

FCA information gathering powers

1 Part 11 of the Financial Services and Markets Act 2000 (information
5gathering and investigations) has effect as if—

(a) to the extent that they relate to a notice or authorisation of the FCA,
the references in section 165(1), (3) and (7)(a) to an authorised person
include a reference to any person who is or at any time was
authorised under section 5(1)(a) of the Compensation Act 2006
10(provision of regulated claims management services),

(b) the reference in section 165(4)(a) to the exercise by either regulator of
functions conferred on it under the Financial Services and Markets
Act 2000 includes a reference to the steps taken, or to be taken, by the
FCA in preparation for the conferral of functions on it by virtue of the
15making of an order under section 22(1B) of that Act (“a regulated
claims management activity order”), and

(c) the reference in section 166(2)(a) to an authorised person includes a
reference to a person who is authorised under section 5(1)(a) of the
Compensation Act 2006.

20FCA preparatory steps

2 The FCA may, before the making of a regulated claims management activity
order, take such steps as the FCA considers necessary or expedient in
preparation for the conferral of functions on it as a result of the making of
the order.

25Consultation requirements

3 Paragraphs 4 and 5 apply in connection with the making or issuing of any
rules or other instrument or document relating to an activity—

(a) of a kind specified in a regulated claims management activity order,
or

(b) 30of a kind specified in an order under section 21(10B) of the Financial
Services and Markets Act 2000.

4 Any requirement imposed on the FCA—

(a) to publish a draft of the rules or other instrument or document and
invite representations about it, or

(b) 35to consult particular persons,

may be satisfied by things done by the FCA before the coming into effect of
the order or the passing of this Act.

5 Section 138I of the Financial Services and Markets Act 2000 (consultation by
the FCA) does not apply in relation to rules which make provision similar to
40any provision in or made under Part 2 of the Compensation Act 2006.

Designation of Regulator’s rules

6 After the making of a regulated claims management activity order, rules
which—

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(a) were made by the Regulator by virtue of provision in or under Part
2 of the Compensation Act 2006, and

(b) are designated by the FCA,

are to be treated as having been made by the FCA by virtue of comparable
5provision in the Financial Services and Markets Act 2000.

7 The rules may be modified by the FCA.

Provision of information by Regulator and OLC

8 The Regulator may disclose to the FCA or the FOS any information which
the Regulator considers that it is necessary or expedient to disclose to the
10FCA or, as the case may be, the FOS so that the FCA or the FOS can take steps
in preparation for the conferral of functions on it as a result of the making of
a regulated claims management activity order.

9 Section 244 of the Enterprise Act 2002 (considerations relevant to disclosure
of information) does not apply in relation to a disclosure under paragraph 8.

10 15The OLC may disclose to the FOS or the FCA any information which the
OLC considers that it is necessary or expedient to disclose to the FOS or, as
the case may be, the FCA so that the FOS or the FCA can take steps in
preparation for the conferral of functions on it as a result of the making of a
regulated claims management activity order.

20Complaints handling

11 Where a regulated claims management activity order is made which
requires the OLC to continue to deal with complaints made to it on or before
a date or event identified in the order—

(a) the FCA is to reimburse the OLC for the cost it incurs in doing so, and

(b) 25this reimbursement obligation 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.

Interpretation

12 30In this Schedule—

  • “the FCA” means the Financial Conduct Authority;

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

  • 35“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
    Compensation Act 2006 or, if no person is so designated, the
    Secretary of State;

  • 40“regulated claims management activity order” has the meaning given
    in paragraph 1(b).