Parliamentary Voting System and Constituencies Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

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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282

      (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
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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.”