Financial Services and Markets Act 2000, section
426(1), (2) and (3)
426 Consequential and supplementary provision
(1) A Minister of the Crown may by order make
such incidental, consequential, transitional or supplemental provision
as he considers necessary or expedient for the general purposes,
or any particular purpose, of this Act or in consequence of any
provision made by or under this Act or for giving full effect
to this Act or any such provision.
(2) An order under subsection (1) may, in particular,
(b) for applying (with or without modifications)
or amending, repealing or revoking any provision of or made under
an Act passed before this act or in the same Session.
(3) No other provision of this Act restricts
the powers conferred by this section.
negative (section 429(8)).
"This is not an uncommon bill provision. It
is similar, for example, to section 75 of the Competition Act
The provision is necessary to ensure that detailed
provisions of the Bill can be brought into effect smoothly, without
the need for further primary legislation and to deal with any
transitional provisions and consequential amendments that are
not covered directly in the bill. The circumstances in which the
power can be used and the purposes for which it may be used are,
in fact, quite focussed. It can only be used for the general or
any particular purposes of the bill, in consequence of its provisions
or for giving full effect to it. In broad terms, the power is
needed to deal with tidying up that is not dealt with directly
by the Bill itself.
Although it is the Treasury's intention to make all
practicable efforts to deal in the bill with the maximum number
of matters that can be dealt with under this power, it is inevitable
with an exercise of this size and complexity that certain things
will fall through the net. For example, the Government intends
to introduce amendments to the Bill that will make consequential
amendments to other legislation. For example, tax and companies
legislation contain provisions that rely on definitions in the
Banking Act 1986 and the Insurance Companies Act 1982. Those provisions
will need to be updated when those other enactments are repealed.
However, some consequential changes may not be easy to identify
and the Treasury needs to have the powers to bring about relevant
any changes in the event there are some that have been overlooked.
It is also possible to imagine circumstances in which
it is necessary to make provision which cannot strictly be characterised
as transitional or consequential but which is to ensure proper
articulation between provisions in the bill, once it is enacted,
and other measures on the statute book. The Treasury are not currently
aware of the need to make such provision but with the range of
matters covered by the bill the need to make such provision seems
a possibility that could not be called remote. By way of example,
the Bill and the Companies Acts make provision requiring auditors
to disclose certain matters in particular circumstances. The purpose
of the requirements will be similar - but as they are not directly
equivalent provisions it is not inconceivable that some inconsistency
or conflict may be identified at a later stage. An order under
this clause would, therefore, be able to resolve such difficulties.
The order is subject to the negative resolution procedure.
This is appropriate because the powers would only be used for
limited purposes to give effect to the policy that Parliament
has endorsed when passing the legislation."
Committee Report (7th
of 1999-00): no comment on this provision
Note: the provision which
became section 426(1) was in a slightly different form at introduction,
being the subject of some minor amendments at Third Reading in
the House of Lords to enable the Ministers in charge of Government
departments other than the Treasury to exercise the powers. The
Committee had no comment to make on these amendments (16th Report