Financial Services and Markets Bill - continued        House of Commons

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     16. - (1) In determining its policy with respect to the amounts of penalties to be imposed by it under this Act, the Authority must take no account of the expenses which it incurs, or expects to incur, in discharging its functions.
      (2) The Authority must prepare and operate a scheme for ensuring that the amounts paid to the Authority by way of penalties imposed under this Act are applied for the benefit of authorised persons.
      (3) The scheme may, in particular, make different provision with respect to different classes of authorised person.
      (4) Before making or varying the scheme, the Authority must publish details of its proposals.
      (5) The published proposals must be accompanied by a statement that representations about them may be made to the Authority before the end of a specified period.
      (6) Before carrying out its proposals, the Authority must have regard to any representations made to it in accordance with sub-paragraph (5).
     17. - (1) The Authority may make rules providing for the payment to it of such fees, in connection with the discharge of any of its functions under or as a result of this Act, as it considers will (taking account of its expected income from fees and charges provided for by any other provision of this Act) enable it-
    (a) to meet expenses incurred in carrying out its functions or for any incidental purpose;
    (b) to repay the principal of, and pay any interest on, any money which it has borrowed and which has been used for the purpose of meeting expenses incurred in relation to its assumption of functions under this Act or the Bank of England Act 1998; and
    (c) to maintain adequate reserves.
      (2) In fixing the amount of any fee which is to be payable to the Authority, no account is to be taken of any sums which the Authority receives, or expects to receive, by way of penalties imposed by it under this Act.
      (3) Sub-paragraph (1)(b) applies whether expenses were incurred before or after the coming into force of this Act or the Bank of England Act 1998.
      (4) Any fee which is owed to the Authority under any provision made by or under this Act may be recovered as a debt due to the Authority.
Services for which fees may not be charged
     18. The power conferred by paragraph 17 may not be used to require-
    (a) a fee to be paid in respect of the discharge of any of the Authority's functions under paragraphs 13, 14, 18 or 19 of Schedule 3; or
    (b) a fee to be paid by any person whose application for approval under section 56 has been granted.
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