Clause 49 - Evidence

Part of Financial Services Bill – in a Public Bill Committee at 4:15 pm on 20 March 2012.

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Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury) 4:15, 20 March 2012

Clause 49 is an odd one. It is about the circumstances where the Treasury—not the regulator—would issue a certificate to define where a

“property vested in a person immediately before a transfer order takes effect has been transferred as a result of the order” and whether that is to be defined as conclusive evidence of the transfer. It would be helpful if the Minister could explain why on earth this clause is necessary. I hate to say it, but the explanatory notes are entirely unhelpful in shedding any light on this circumstance. Will he explain what certificate the Treasury would issue to a mutual on property vested in a person immediately before a transfer order?

We discussed the draft mutuals order in our debate on clause 48, which relates to the transfer of functions to mutual societies. The draft order mentions certificates only once. Under the amendment to section 90(8) of the Friendly Societies Act 1992, it states that the FCA

“must keep a copy of the direction; and…issue a registration certificate to the transferee…The registration certification must specify a date as the transfer date for the transfer.”

There is no mention of a certificate issued by the Treasury. Will the Minister explain why the draft mutuals order does not discuss the Treasury certification process? Will he clarify the circumstances in which those certificates would be issued?