House of Commons portcullis
House of Commons
Session 2009 - 10
Internet Publications
Other Bills before Parliament

Financial Services Bill


Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

52

 

Schedules

Schedule 1

Section 6

 

Further provision about the consumer financial education body

1          

This is the Schedule 1A to be inserted in the Financial Services and Markets

Act 2000 after Schedule 1—

5

“Schedule 1A

Section 6A

 

Further provision about the consumer financial education body

Part 1

General

Ensuring exercise of consumer financial education function etc

10

1     (1)  

The Authority must take such steps as are necessary to ensure that

the consumer financial education body is, at all times, capable of

exercising the consumer financial education function.

      (2)  

In complying with the duty under sub-paragraph (1) the

Authority may, in particular, provide services to that body which

15

the Authority considers would facilitate the exercise of that

function.

Constitution

2     (1)  

The constitution of the consumer financial education body must

provide for it to have—

20

(a)   

a chair;

(b)   

a chief executive; and

(c)   

a board (which must include the chair and chief executive)

whose members are the body’s directors.

      (2)  

The members of the board must be persons appointed, and liable

25

to removal from office, by the Authority (acting, in the case of the

chair or chief executive, with the approval of the Treasury).

      (3)  

But the terms of appointment of members of the board (and in

particular those governing removal from office) must be such as to

secure their independence from the Authority in the exercise of

30

the consumer financial education function.

 

 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

53

 

Status

3     (1)  

The consumer financial education body is not to be regarded as

exercising functions on behalf of the Crown.

      (2)  

The body’s board members, officers and staff are not to be

regarded as Crown servants.

5

Discharge of function by others

4     (1)  

The consumer financial education body may discharge the

consumer financial education function by—

(a)   

supporting the doing by other persons of anything that it

considers would enhance the understanding, knowledge

10

or ability mentioned in section 6A(1); or

(b)   

arranging for other persons to do anything that it considers

would enhance that understanding, knowledge or ability.

      (2)  

The reference in sub-paragraph (1)(a) to support includes financial

support.

15

      (3)  

The reference in sub-paragraph (1)(b) to arrangements includes

arrangements under which payments are made to the other

persons.

      (4)  

Nothing in this paragraph is to limit other ways in which the

consumer financial eduction body may discharge the consumer

20

financial education function.

5     (1)  

This paragraph applies if the consumer financial education body

arranges for any person (including one established by or under an

enactment) to do anything that it considers would enhance the

understanding, knowledge or ability mentioned in section 6A(1).

25

      (2)  

The person may do that thing despite any limitation on its capacity

(whether under a rule of law or otherwise) which, but for this

paragraph, would have applied.

Market confidence and financial stability

6          

In discharging the consumer financial education function, the

30

consumer financial education body must have regard to the

importance of—

(a)   

maintaining confidence in the UK financial system; and

(b)   

maintaining the stability of the UK financial system.

Budget

35

7     (1)  

The consumer financial education body must adopt an annual

budget which has been approved by the Authority.

      (2)  

The budget must be adopted—

(a)   

in the case of the body’s first financial year, as soon as

reasonably practicable after the body is established; and

40

(b)   

in the case of each subsequent financial year, before the

start of the financial year.

 
 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

54

 

      (3)  

The consumer financial education body may, with the approval of

the Authority, vary the budget for a financial year at any time after

its adoption.

      (4)  

Before adopting or varying a budget, the consumer financial

education body must consult—

5

(a)   

the Treasury;

(b)   

the Secretary of State;

(c)   

the Office of Fair Trading; and

(d)   

such other persons (if any) as the body considers

appropriate.

10

      (5)  

The consumer financial education body must publish each

budget, and each variation of a budget, in the way it considers

appropriate.

Annual plan

8     (1)  

The consumer financial education body must in respect of each of

15

its financial years prepare an annual plan which has been

approved by the Authority.

      (2)  

The plan must be prepared—

(a)   

in the case of the body’s first financial year, as soon as

reasonably practicable after the body is established; and

20

(b)   

in the case of each subsequent financial year, before the

start of the financial year.

      (3)  

The consumer financial education body may, with the approval of

the Authority, vary the plan in respect of a financial year at any

time after its preparation.

25

      (4)  

An annual plan in respect of a financial year must set out—

(a)   

the objectives of the consumer financial eduction body for

the year;

(b)   

the relative priorities of each of those objectives; and

(c)   

how its resources are to be allocated among the activities to

30

be carried on in connection with the discharge of the

consumer financial education function.

      (5)  

Before preparing or varying an annual plan, the consumer

financial education body must consult—

(a)   

the Treasury;

35

(b)   

the Secretary of State;

(c)   

the Office of Fair Trading;

(d)   

the Practitioner Panel;

(e)   

the Consumer Panel; and

(f)   

such other persons (if any) as the body considers

40

appropriate.

      (6)  

The consumer financial education body must publish each annual

plan, and each variation of an annual plan, in the way it considers

appropriate.

 
 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

55

 

Annual reports

9     (1)  

At least once a year, the consumer financial education body must

make a report to the Authority in relation to the discharge of the

consumer financial education function.

      (2)  

The report must—

5

(a)   

set out the extent to which the body has met its objectives

and priorities for the period covered by the report;

(b)   

include a copy of its latest accounts; and

(c)   

comply with any requirements specified in rules made by

the Authority.

10

      (3)  

The consumer financial education body must publish each report

in the way it considers appropriate.

      (4)  

Nothing in this paragraph requires the consumer financial

education body to make a report at any time in the period of 12

months beginning with its establishment.

15

Exemption from consumer credit rules

10    (1)  

A licence is not required under Part 3 of the Consumer Credit Act

1974 in respect of anything done by—

(a)   

the consumer financial education body in discharging the

consumer financial education function; or

20

(b)   

a person acting on its behalf in accordance with

arrangements made under paragraph 4(1)(b).

      (2)  

Nothing in Part 4 or 10 of that Act (seeking business or ancillary

credit business) is to apply in relation to anything done by—

(a)   

the consumer financial education body in discharging the

25

consumer financial education function; or

(b)   

a person acting on its behalf in accordance with

arrangements made under paragraph 4(1)(b).

Part 2

Funding

30

Meaning of “the relevant costs”

11    (1)  

In this Part of this Schedule “the relevant costs” means—

(a)   

the expenses incurred by the Authority in establishing the

consumer financial education body; and

(b)   

the expenses incurred, or expected to be incurred, by the

35

consumer financial education body in connection with the

discharge of the consumer financial education function.

      (2)  

For the purposes of sub-paragraph (1)(a) it does not matter when

the expenses were incurred.

 
 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

56

 

Funding of the relevant costs by authorised persons

12    (1)  

For the purpose of meeting a proportion of the relevant costs the

Authority may make rules requiring

(a)   

authorised persons, or

(b)   

any specified class of authorised person,

5

           

to pay to the Authority specified amounts or amounts calculated in a

specified way.

      (2)  

Before making the rules the Authority must have regard to other

anticipated sources of funding of the relevant costs.

      (3)  

The amounts to be paid under the rules may include a component

10

to cover the expenses of the Authority in collecting the payments

(“collection costs”).

      (4)  

The Authority must pay to the consumer financial education body

the amounts that it receives under the rules apart from amounts in

respect of its collection costs (which it may keep).

15

      (5)  

“Specified” means specified in the rules.

Funding of the relevant costs by consumer credit licensees etc

13    (1)  

For the purpose of meeting a proportion of the relevant costs the OFT

may, with the approval of the Secretary of State and the Treasury, from

time to time require

20

(a)   

qualifying consumer credit licensees or applicants, or

(b)   

any specified class of qualifying consumer credit licensee or

applicant,

           

to pay to the OFT specified amounts or amounts calculated in a specified

way.

25

      (2)  

The requirements are to be imposed by general notice.

      (3)  

“Qualifying consumer credit licensee or applicant” means—

(a)   

a licensee under a licence which covers to any extent the

carrying on of a type of business specified in an order

under section 226A(2)(e); or

30

(b)   

an applicant for a licence, or for the renewal of a licence,

which (if granted or renewed) will fall within paragraph

(a) above.

      (4)  

Before giving a general notice the OFT must have regard to other

anticipated sources of funding of the relevant costs.

35

      (5)  

Before giving a general notice, the OFT must consult—

(a)   

the Authority;

(b)   

the consumer financial education body; and

(c)   

such other persons (if any) as the OFT considers

appropriate.

40

      (6)  

The amounts to be paid under a general notice may include a

component to cover the expenses of the OFT in collecting the

payments (“collection costs”).

 
 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

57

 

      (7)  

The OFT must pay to the consumer financial education body the

amounts that it receives under a general notice apart from

amounts in respect of its collection costs (which it may keep).

      (8)  

A general notice may—

(a)   

specify the time at or by which the payments are to be

5

made;

(b)   

provide for exceptions from requirements imposed on a

class of qualifying consumer credit licensee or applicant;

(c)   

impose different requirements on different classes of

qualifying consumer credit licensee or applicant;

10

(d)   

make provision for refunds in specified circumstances.

      (9)  

Expressions which are used in sub-paragraph (3) and in the

Consumer Credit Act 1974 have the same meaning in that sub-

paragraph as in that Act.

     (10)  

In this paragraph—

15

“general notice” means a notice published by the OFT at a

time and in a manner appearing to it suitable for securing

that the notice is seen within a reasonable time by persons

likely to be affected by it;

“the OFT” means the Office of Fair Trading;

20

“specified” means specified in the general notice.

Funding by grants or loans etc made by Treasury or Secretary of State

14    (1)  

The Treasury or the Secretary of State may

(a)   

make grants or loans, or

(b)   

provide any other form of financial assistance,

25

           

to the consumer financial education body for the purpose of meeting any

expenses incurred by it in connection with the discharge of the consumer

financial education function.

      (2)  

Any grant or loan or other form of financial assistance under this

paragraph may be made or provided subject to such terms as the Treasury

30

or the Secretary of State consider appropriate.

      (3)  

Any expenses incurred by the Treasury or the Secretary of State under

this paragraph are to be met out of money provided by Parliament.

Part 3

Reviews

35

Reviews of economy etc of the consumer financial education body

15    (1)  

The Authority may appoint an independent person to conduct a

review of the economy, efficiency and effectiveness with which

the consumer financial education body has used its resources in

discharging the consumer financial education function.

40

      (2)  

The Authority must consult the Treasury before acting under this

paragraph.

 
 

Financial Services Bill
Schedule 1 — Further provision about the consumer financial education body

58

 

      (3)  

A review is not to be concerned with the merits of the body’s

general policy or principles in discharging the consumer financial

education function.

      (4)  

On completion of a review, the person conducting it must make a

written report to the Authority—

5

(a)   

setting out the result of the review; and

(b)   

making such recommendations (if any) as the person

considers appropriate.

      (5)  

The Authority must publish a copy of the report in the way it

considers appropriate.

10

      (6)  

Any expenses reasonably incurred in the conduct of the review are

to be met by the Authority.

      (7)  

“Independent” means appearing to the Authority to be

independent of the consumer financial education body.

Right to obtain documents and information

15

16    (1)  

A person conducting a review under paragraph 15—

(a)   

has a right of access at any reasonable time to all such

documents as the person may reasonably require for the

purposes of the review; and

(b)   

may require any person holding or accountable for any

20

such document to provide such information and

explanation as are reasonably required for those purposes.

      (2)  

This paragraph applies only to documents in the custody or under

the control of the consumer financial education body.

      (3)  

An obligation imposed on a person as a result of this paragraph is

25

enforceable by an injunction or, in Scotland, by an order for

specific performance under section 45 of the Court of Session Act

1988.”

2     (1)  

This paragraph applies to rules under paragraph 12 of Schedule 1A to FSMA

2000 (as inserted by this Schedule).

30

      (2)  

The FSA may before commencement—

(a)   

propose to make rules under that paragraph, and

(b)   

publish a draft of the proposed rules in the way appearing to it to be

best calculated to bring them to the attention of the public.

      (3)  

The draft must be accompanied by—

35

(a)   

an explanation of the purpose of the proposed rules,

(b)   

an explanation of the FSA’s reasons for believing that making the

proposed rules is compatible with its general duties under section 2

of FSMA 2000,

(c)   

notice that representations about the proposals may be made to the

40

FSA within a specified time, and

(d)   

details of the expected expenditure by reference to which the

proposal is made.

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2009
Revised 19 November 2009