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Session 2005 - 06
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Consumer Credit Bill


Consumer Credit Bill

34

 

41      

Procedure in relation to requirements

After section 33C of the 1974 Act (inserted by section 40 of this Act) insert—

“33D    

Procedure in relation to requirements

(1)   

Before making a determination—

(a)   

to impose a requirement on a person under section 33A or 33B,

5

(b)   

to refuse an application under section 33C(5) in relation to a

requirement imposed under either of those sections, or

(c)   

to vary or to revoke a requirement so imposed,

   

the OFT shall proceed as follows.

(2)   

The OFT shall give a notice to every person to whom subsection (3)

10

applies in relation to the determination—

(a)   

informing him, with reasons, that it is minded to make the

determination; and

(b)   

inviting him to submit to it representations as to the

determination under section 34.

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(3)   

This subsection applies to a person in relation to the determination if he

falls within, or as a consequence of the determination would fall within,

section 33C(6) or (7) in relation to the requirement in question.

(4)   

This section does not require the OFT to give a notice to a person if the

determination in question is in the same terms as a proposal made to

20

the OFT by that person (whether as part of an application under this

Part or otherwise).”

42      

Guidance on requirements

After section 33D of the 1974 Act (inserted by section 41 of this Act) insert­­­­­­—

“33E    

Guidance on requirements

25

(1)   

The OFT shall prepare and publish guidance in relation to how it

exercises, or how it proposes to exercise, its powers under sections 33A

to 33C.

(2)   

If the OFT revises the guidance at any time after it has been published,

the OFT shall publish it as revised.

30

(3)   

The guidance shall be published in such manner as the OFT thinks fit

for the purpose of bringing it to the attention of those likely to be

affected by it.

(4)   

In preparing or revising the guidance the OFT shall consult such

persons as it thinks fit.

35

(5)   

In exercising its powers under sections 33A to 33C the OFT shall have

regard to the guidance as most recently published.”

43      

Consequential amendments relating to requirements

(1)   

In section 23 of the 1974 Act (authorisation of specific activities by licence) after

 
 

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subsection (4) insert—

“(5)   

An activity does not cease to be covered by a licence simply because it

involves a failure to comply with a requirement imposed under section

33A or 33B.”

(2)   

In section 35(1) of that Act (particulars to be kept in register maintained by

5

OFT) after paragraph (b) insert—

“(ba)   

requirements imposed under section 33A or 33B which are in

effect or which have been in effect, with details of any variation

of such a requirement;”.

(3)   

In the Table in section 41 of that Act (appeals) after the entry relating to “refusal

10

to end suspension of licence in accordance with terms of application” insert the

following entry—

 

“Determination—

A person who falls within

 
 

(a)   

to impose a

section 33C(6) or (7) in

 
 

requirement under

relation to the requirement

 

15

 

section 33A or 33B;

unless the OFT was not

 
 

(b)   

to refuse an

required to give a notice to

 
 

application under

him in relation to the

 
 

section 33C(5) in

determination by virtue of

 
 

relation to a

section 33D(4).”

 

20

 

requirement

  
 

imposed under

  
 

either of those

  
 

sections; or

  
 

(c)   

to vary or revoke a

  

25

 

requirement so

  
 

imposed.

  

Powers and duties in relation to information

44      

Provision of information etc. by applicants

(1)   

In subsection (2) of section 6 of the 1974 Act (which contains provision relating

30

to applications)—

(a)   

for “particulars” substitute “information and documents”;

(b)   

for “by” in the second place where it occurs substitute “or describe in a”.

(2)   

For subsection (3) of that section substitute—

“(3)   

Where the OFT receives an application, it may by notice to the applicant

35

at any time before the determination of the application require him to

provide such information or documents relevant to the application as

may be specified or described in the notice.”

(3)   

After subsection (4) of that section insert—

“(5)   

Subsection (6) applies where a general notice under subsection (2)

40

comes into effect—

(a)   

after an application has been made; but

(b)   

before its determination.

 
 

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(6)   

The applicant shall, within such period as may be specified in the

general notice, provide the OFT with any information or document—

(a)   

which he has not previously provided in relation to the

application by virtue of this section;

(b)   

which he would have been required to provide with his

5

application had it been made after the general notice came into

effect; and

(c)   

which the general notice requires to be provided for the

purposes of this subsection.

(7)   

An applicant shall notify the OFT, giving details, if before his

10

application is determined—

(a)   

any information or document provided by him in relation to the

application by virtue of this section is, to any extent, superseded

or otherwise affected by a change in circumstances; or

(b)   

he becomes aware of an error in or omission from any such

15

information or document.

(8)   

A notification for the purposes of subsection (7) shall be given within

the period of 28 days beginning with the day on which (as the case may

be)—

(a)   

the information or document is superseded;

20

(b)   

the change in circumstances occurs; or

(c)   

the applicant becomes aware of the error or omission.

(9)   

Subsection (7) does not require an applicant to notify the OFT about—

(a)   

anything of which he is required to notify it under section 36; or

(b)   

an error in or omission from any information or document

25

which is a clerical error or omission not affecting the substance

of the information or document.”

45      

Duties to notify changes in information etc.

After section 36 of the 1974 Act insert—

“36A    

Further duties to notify changes etc.

30

(1)   

Subsections (2) to (4) apply where a general notice under section 6(2)

comes into effect.

(2)   

A person who is the licensee under a standard licence or who is the

original applicant for a group licence shall, in relation to each relevant

application which he has made and which was determined before the

35

general notice came into effect, provide the OFT with any information

or document—

(a)   

which he would have been required to provide with the

application had the application been made after the general

notice came into effect; and

40

(b)   

which the general notice requires to be provided for the

purposes of this subsection.

(3)   

Any such information or document shall be provided within such

period as may be specified in the general notice.

(4)   

Subsection (2) does not require a person to provide any information or

45

document—

 
 

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(a)   

which he provided in relation to the application by virtue of

section 6;

(b)   

which he has previously provided in relation to the application

by virtue of this section; or

(c)   

which he would have been required to provide in relation to the

5

application by virtue of subsection (5) but for subsection (6).

(5)   

A person who is the licensee under a standard licence or who is the

original applicant for a group licence shall, in relation to each relevant

application which he has made, notify the OFT giving details if, after

the application is determined, any information or document which

10

he—

(a)   

provided in relation to the application by virtue of section 6, or

(b)   

has so provided by virtue of this section,

   

is, to any extent, superseded or otherwise affected by a change in

circumstances.

15

(6)   

Subsection (5) does not require a person to notify the OFT about a

matter unless it falls within a description of matters specified by the

OFT in a general notice.

(7)   

A description may be specified for the purposes of subsection (6) only

if the OFT is satisfied that the matters which would fall within that

20

description are matters which would be relevant to the question of—

(a)   

whether, having regard to section 25(2), a person is a fit person

to carry on a business under a standard licence; or

(b)   

whether the public interest is better served by a group licence

remaining in effect than by obliging the licensees under it to

25

apply separately for standard licences.

(8)   

A person who is the licensee under a standard licence or who is the

original applicant for a group licence shall, in relation to each relevant

application which he has made, notify the OFT about every error or

omission—

30

(a)   

in or from any information or document which he provided by

virtue of section 6, or which he has provided by virtue of this

section, in relation to the application; and

(b)   

of which he becomes aware after the determination of the

application.

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(9)   

A notification for the purposes of subsection (5) or (8) shall be given

within the period of 28 days beginning with the day on which (as the

case may be)—

(a)   

the information or document is superseded;

(b)   

the change in circumstances occurs; or

40

(c)   

the licensee or the original applicant becomes aware of the error

or omission.

(10)   

This section does not require a person to notify the OFT about—

(a)   

anything of which he is required to notify it under section 36; or

(b)   

an error in or omission from any information or document

45

which is a clerical error or omission not affecting the substance

of the information or document.

 
 

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(11)   

In this section ‘relevant application’ means, in relation to a person who

is the licensee under a standard licence or who is the original applicant

for a group licence—

(a)   

the original application for the licence; or

(b)   

an application for its renewal or for its variation.”

5

46      

Power of OFT to require information generally

After section 36A of the 1974 Act (inserted by section 45 of this Act) insert—

“36B    

Power of OFT to require information generally

(1)   

The OFT may by notice to a person require him—

(a)   

to provide such information as may be specified or described in

10

the notice; or

(b)   

to produce such documents as may be so specified or described.

(2)   

The notice shall set out the reasons why the OFT requires the

information or documents to be provided or produced.

(3)   

The information or documents shall be provided or produced—

15

(a)   

before the end of such reasonable period as may be specified in

the notice; and

(b)   

at such place as may be so specified.

(4)   

A requirement may be imposed under subsection (1) on a person who

is—

20

(a)   

the licensee under a standard licence, or

(b)   

the original applicant for a group licence,

   

only if the provision or production of the information or documents in

question is reasonably required for purposes connected with the OFT’s

functions under this Act.

25

(5)   

A requirement may be imposed under subsection (1) on any other

person only if—

(a)   

an act or omission mentioned in subsection (6) has occurred or

the OFT has reason to suspect that such an act or omission has

occurred; and

30

(b)   

the provision or production of the information or documents in

question is reasonably required for purposes connected with—

(i)   

the taking by the OFT of steps under this Part as a

consequence; or

(ii)   

its consideration of whether to take such steps as a

35

consequence.

(6)   

Those acts or omissions are acts or omissions which—

(a)   

cast doubt on whether, having regard to section 25(2), a person

is a fit person to carry on a business under a standard licence;

(b)   

cast doubt on whether the public interest is better served by a

40

group licence remaining in effect, or being issued, than by

obliging the persons who are licensees under it, or who would

be licensees under it, to apply separately for standard licences;

(c)   

give rise, or are likely to give rise, to dissatisfaction for the

purposes of section 33A(1) or 33B(1); or

45

 
 

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(d)   

constitute or give rise to a failure of the kind mentioned in

section 39A(1).”

47      

Power of OFT to require access to premises

After section 36B of the 1974 Act (inserted by section 46 of this Act) insert—

“36C    

Power of OFT to require access to premises

5

(1)   

The OFT may by notice to a licensee under a licence require him to

secure that access to the premises specified or described in the notice is

given to an officer of an enforcement authority in order for the officer—

(a)   

to observe the carrying on of a business under the licence by the

licensee; or

10

(b)   

to inspect such documents of the licensee relating to such a

business as are—

(i)   

specified or described in the notice; and

(ii)   

situated on the premises.

(2)   

The notice shall set out the reasons why the access is required.

15

(3)   

The premises which may be specified or described in the notice—

(a)   

include premises which are not premises of the licensee if they

are premises from which he carries on activities in connection

with the business in question; but

(b)   

do not include premises which are used only as a dwelling.

20

(4)   

The licensee shall secure that the required access is given at such times

as the OFT reasonably requires.

(5)   

The OFT shall give reasonable notice of those times.

(6)   

Where an officer is given access to any premises by virtue of this

section, the licensee shall also secure that persons on the premises give

25

the officer such assistance or information as he may reasonably require

in connection with his observation or inspection of documents (as the

case may be).

(7)   

The assistance that may be required under subsection (6) includes

(amongst other things) the giving to the officer of an explanation of a

30

document which he is inspecting.

(8)   

A requirement may be imposed under subsection (1) on a person who

is—

(a)   

the licensee under a standard licence, or

(b)   

the original applicant for a group licence,

35

   

only if the observation or inspection in question is reasonably required

for purposes connected with the OFT’s functions under this Act.

(9)   

A requirement may be imposed under subsection (1) on any other

person only if—

(a)   

an act or omission mentioned in section 36B(6) has occurred or

40

the OFT has reason to suspect that such an act or omission has

occurred; and

(b)   

the observation or inspection in question is reasonably required

for purposes connected with—

 
 

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(i)   

the taking by the OFT of steps under this Part as a

consequence; or

(ii)   

its consideration of whether to take such steps as a

consequence.

(10)   

In this section—

5

(a)   

references to a licensee under a licence include, in relation to a

group licence issued on application, references to the original

applicant; and

(b)   

references to a business being carried on under a licence by a

licensee include, in relation to the original applicant for a group

10

licence, activities being carried on by him for the purpose of

regulating or otherwise supervising (whether by virtue of an

enactment, an agreement or otherwise) licensees under that

licence in connection with their carrying on of businesses under

that licence.”

15

48      

Entry to premises under warrant

After section 36C of the 1974 Act (inserted by section 47 of this Act) insert—

“36D    

Entry to premises under warrant

(1)   

A justice of the peace may issue a warrant under this section if satisfied

on information on oath given on behalf of the OFT that there are

20

reasonable grounds for believing that the following conditions are

satisfied.

(2)   

Those conditions are—

(a)   

that there is on the premises specified in the warrant

information or documents in relation to which a requirement

25

could be imposed under section 36B; and

(b)   

that if such a requirement were to be imposed in relation to the

information or documents—

(i)   

it would not be complied with; or

(ii)   

the information or documents would be tampered with.

30

(3)   

A warrant under this section shall authorise an officer of an

enforcement authority—

(a)   

to enter the premises specified in the warrant;

(b)   

to search the premises and to seize and detain any information

or documents appearing to be information or documents

35

specified in the warrant or information or documents of a

description so specified;

(c)   

to take any other steps which may appear to be reasonably

necessary for preserving such information or documents or

preventing interference with them; and

40

(d)   

to use such force as may be reasonably necessary.

(4)   

An officer entering premises by virtue of this section may take such

persons and equipment with him as he thinks necessary.

(5)   

In the application of this section to Scotland—

(a)   

the reference to a justice of the peace includes a reference to a

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sheriff;

 
 

 
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