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Parliamentary Voting System and Constituencies Bill


Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

279

 

(a)   

it enters into a regulated transaction of a description

mentioned in paragraph 2(1) or (2) to which another party

is not an authorised participant,

(b)   

no officer of the permitted participant knew or ought

reasonably to have known that the other party is not an

5

authorised participant, and

(c)   

as soon as practicable after knowledge of the matters

mentioned in paragraph (a) comes to the responsible

person he fails to take all reasonable steps to repay any

money which the permitted participant has received by

10

virtue of the transaction.

      (6)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

(a)   

the permitted participant enters into a regulated

transaction of a description mentioned in paragraph 2(1)

15

or (2) to which another party is not an authorised

participant,

(b)   

sub-paragraph (3)(b) does not apply to the person, and

(c)   

as soon as practicable after knowledge of the matters

mentioned in paragraph (a) comes to the person he fails to

20

take all reasonable steps to repay any money which the

permitted participant has received by virtue of the

transaction.

      (7)  

An individual who is a permitted participant commits an offence

if—

25

(a)   

the individual benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant, and

(b)   

the individual knew or ought reasonably to have known of

the matters mentioned in paragraph (a).

30

      (8)  

A permitted participant that is not an individual commits an

offence if—

(a)   

it benefits from or falls to benefit in consequence of a

connected transaction to which any of the parties is not an

authorised participant, and

35

(b)   

an officer of the permitted participant knew or ought

reasonably to have known of the matters mentioned in

paragraph (a).

      (9)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

40

(a)   

the permitted participant benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant, and

(b)   

the person knew or ought reasonably to have known of the

matters mentioned in paragraph (a).

45

     (10)  

An individual who is a permitted participant commits an offence

if—

(a)   

the individual is a party to a transaction of a description

mentioned in paragraph 2(3)(a),

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

280

 

(b)   

the individual benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant,

(c)   

the individual neither knew nor ought reasonably to have

known of the matters mentioned in paragraphs (a) and (b),

5

and

(d)   

as soon as practicable after knowledge of the matters

mentioned in paragraphs (a) and (b) comes to the

individual he fails to take all reasonable steps to pay to any

person who has provided the individual with any benefit

10

in consequence of the connected transaction the value of

the benefit.

     (11)  

A permitted participant that is not an individual commits an

offence if—

(a)   

it is a party to a transaction of a description mentioned in

15

paragraph 2(3)(a),

(b)   

it benefits from or falls to benefit in consequence of a

connected transaction to which any of the parties is not an

authorised participant,

(c)   

no officer of the permitted participant knew or ought

20

reasonably to have known of the matters mentioned in

paragraphs (a) and (b), and

(d)   

as soon as practicable after knowledge of the matters

mentioned in paragraphs (a) and (b) comes to the

responsible person he fails to take all reasonable steps to

25

pay to any person who has provided the permitted

participant with any benefit in consequence of the

connected transaction the value of the benefit.

     (12)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

30

(a)   

the permitted participant is a party to a transaction of a

description mentioned in paragraph 2(3)(a),

(b)   

the permitted participant benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant,

35

(c)   

sub-paragraph (9)(b) does not apply to the person, and

(d)   

as soon as practicable after knowledge of the matters

mentioned in paragraphs (a) and (b) comes to the person

he fails to take all reasonable steps to pay to any person

who has provided the permitted participant with any

40

benefit in consequence of the connected transaction the

value of the benefit.

     (13)  

A person commits an offence if the person—

(a)   

knowingly enters into, or

(b)   

knowingly does any act in furtherance of,

45

           

any arrangement which facilitates or is likely to facilitate, whether

by means of concealment or disguise or otherwise, the

participation by a permitted participant in a regulated transaction

with a person other than an authorised participant.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

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     (14)  

It is a defence for a person charged with an offence under sub-

paragraph (3) to prove that the person took all reasonable steps to

prevent the permitted participant entering into the transaction.

     (15)  

It is a defence for a person charged with an offence under sub-

paragraph (9) to prove that the person took all reasonable steps to

5

prevent the permitted participant benefiting in consequence of the

connected transaction.

     (16)  

A reference to a permitted participant entering into a regulated

transaction includes a reference to any circumstances in which the

terms of a regulated transaction are varied so as to increase the

10

amount of money to which the permitted participant is entitled in

consequence of the transaction.

     (17)  

A reference to a permitted participant entering into a transaction

to which another party is not an authorised participant includes a

reference to any circumstances in which another party to the

15

transaction who is an authorised participant ceases (for whatever

reason) to be an authorised participant.

Penalties

9     (1)  

A person guilty of an offence under sub-paragraph (1), (2), (4), (7),

(8) or (10) of paragraph 8 is liable—

20

(a)   

on summary conviction, to a fine not exceeding the

statutory maximum;

(b)   

on conviction on indictment, to a fine.

      (2)  

A person guilty of an offence under sub-paragraph (3), (5), (6), (9),

(11), (12) or (13) of paragraph 8 is liable—

25

(a)   

on summary conviction, to imprisonment for a term not

exceeding 12 months or to a fine not exceeding the

statutory maximum;

(b)   

on conviction on indictment, to imprisonment for a term

not exceeding 12 months or to a fine.

30

      (3)  

In the application of sub-paragraph (2)(a)—

(a)   

in England and Wales, in relation to an offence committed

before the commencement of section 154(1) of the Criminal

Justice Act 2003, or

(b)   

in Northern Ireland,

35

           

the reference to 12 months is to be read as a reference to 6 months.

Part 3

Reporting of regulated transactions

Statement of regulated transactions

10    (1)  

The responsible person in relation to a permitted participant must

40

include in any return required to be prepared under section 120 a

statement of regulated transactions entered into by the permitted

participant.

      (2)  

The statement must comply with paragraphs 11 to 15.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

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      (3)  

For the purposes of those paragraphs a regulated transaction is a

recordable transaction—

(a)   

if the value of the transaction is more than £7,500, or

(b)   

if the aggregate value of it and any other relevant benefit

or benefits is more than that amount.

5

           

In paragraph (b) “relevant benefit” means any relevant donation

(within the meaning of Schedule 15) or regulated transaction

made by, or entered into with, the person with whom the

regulated transaction was entered into.

Identity of authorised participants

10

11         

The statement must record, in relation to each recordable

transaction to which an authorised participant was a party, the

information about the authorised participant which is, in

connection with transactions entered into by political parties,

required to be recorded in transaction reports by virtue of

15

paragraph 2 of Schedule 6A.

Identity of unauthorised participants

12         

The statement must record, in relation to each recordable

transaction to which a person other than an authorised participant

was a party—

20

(a)   

the name and address of the person;

(b)   

the date when, and the manner in which, the transaction

was dealt with in accordance with sub-paragraphs (3) to

(5) of paragraph 5 or those sub-paragraphs as applied by

paragraph 5(6) or 6(2).

25

Details of transaction

13    (1)  

The statement must record, in relation to each recordable

transaction, the information about the transaction which is, in

connection with transactions entered into by political parties,

required to be recorded in transaction reports by virtue of

30

paragraph 5(2), (3) and (4) of Schedule 6A (read with any

necessary modifications).

      (2)  

The statement must record, in relation to each recordable

transaction of a description mentioned in paragraph 2(1) or (2)

above, the information about the transaction which is, in

35

connection with transactions entered into by political parties,

required to be recorded in transaction reports by virtue of

paragraph 6 of Schedule 6A.

      (3)  

The statement must record, in relation to each recordable

transaction of a description mentioned in paragraph 2(3)(a) above,

40

the information about the transaction which is, in connection with

transactions entered into by political parties, required to be

recorded in transaction reports by virtue of paragraph 7(2)(b), (3)

and (4) of Schedule 6A.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

283

 

Changes

14    (1)  

Where another authorised participant has become a party to a

regulated transaction (whether in place of or in addition to any

existing participant), or there has been any other change in any of

the information that is required by paragraphs 11 to 13 to be

5

included in the statement, the statement must record—

(a)   

the information as it was both before and after the change;

(b)   

the date of the change.

      (2)  

Where a recordable transaction has come to an end, the statement

must—

10

(a)   

record that fact;

(b)   

record the date when it happened;

(c)   

in the case of a loan, state how the loan has come to an end.

      (3)  

For the purposes of sub-paragraph (2), a loan comes to an end if—

(a)   

the whole debt (or all the remaining debt) is repaid;

15

(b)   

the creditor releases the whole debt.

Total value of non-recordable transactions

15         

The statement must record the total value of any regulated

transactions that are not recordable transactions.

Part 4

20

Supplemental

Non-disclosure with intent to conceal

16    (1)  

This paragraph applies where, on an application made by the

Commission, the court is satisfied that any failure to comply with

a requirement of Part 3 of this Schedule in relation to—

25

(a)   

any transaction entered into by the permitted participant,

or

(b)   

any change made to a transaction to which the permitted

participant is a party,

           

was attributable to an intention on the part of any person to

30

conceal the existence or true value of the transaction.

      (2)  

The court may make such order as it thinks fit to restore (so far as

is possible) the parties to the transaction to the position they

would have been in if the transaction had not been entered into.

      (3)  

An order under this paragraph may in particular—

35

(a)   

where the transaction is a loan or credit facility, require

that any amount owed by the permitted participant be

repaid (and that no further sums be advanced under it);

(b)   

where any form of security is given for a sum owed under

the transaction, or the transaction is an arrangement by

40

which any form of security is given, require that the

security be discharged.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

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Proceedings under paragraphs 5 and 16

17    (1)  

This paragraph has effect in relation to proceedings on an

application under paragraph 5(4) or 16.

      (2)  

The court is—

(a)   

in England and Wales, the county court;

5

(b)   

in Northern Ireland, the county court.

           

In Scotland, the court is the sheriff and the proceedings are civil

proceedings.

      (3)  

The standard of proof is that applicable to civil proceedings.

      (4)  

An order may be made whether or not proceedings are brought

10

against any person for an offence under paragraph 8 or section

123.

      (5)  

An appeal against an order made by the sheriff may be made to

the Court of Session.

      (6)  

Rules of court in any part of the United Kingdom may make

15

provision—

(a)   

with respect to applications or appeals from proceedings

on such applications;

(b)   

for the giving of notice of such applications or appeals to

persons affected;

20

(c)   

for the joinder, or in Scotland sisting, of such persons as

parties;

(d)   

generally with respect to procedure in such applications or

appeals.

      (7)  

Sub-paragraph (6) does not affect any existing power to make

25

rules.

Interpretation

18    (1)  

In this Schedule—

“authorised participant” is to be construed in accordance

with paragraph 4 (and see paragraph 1(5));

30

“connected transaction” has the meaning given by paragraph

2(9);

“credit facility” has the meaning given by paragraph 2(11);

“permitted participant” is to be construed in accordance with

paragraph 1;

35

“regulated transaction” is to be construed in accordance with

paragraph 2.

      (2)  

For the purposes of any provision relating to the reporting of

transactions, anything required to be done by a permitted

participant in consequence of its being a party to a regulated

40

transaction must also be done by it, if it is a party to a transaction

of a description mentioned in paragraph 2(3)(a), as if it were a

party to the connected transaction.”

 
 

 
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Revised 26 October 2010