Clause 50 - Repeals in Part 21 of FSMA 2000

Financial Services Bill – in a Public Bill Committee at 4:30 pm on 20th March 2012.

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Question proposed, That the clause stand part of the Bill.

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury)

Clause 50 repeals several sections in part 21 of the Financial Services and Markets Act 2000, for example subsections (1) and (2) of section 334, which relate to the Friendly Societies Commission. It is important to have a smooth transition process from individual organisations—such as the Registry of Friendly Societies or the Building Societies Commission—to the FSA, and beyond to other regulators. Many of the powers that are being transferred are already largely redundant because of changes made by previous clauses.

Will the Minister clarify why the Government are repealing subsections (1) and (2) of section 334, regarding the Friendly Societies Commission, but not subsections (3)  and (4)? Subsections (1) and (2) give the Treasury order-making powers to provide for functions from the Friendly Societies Commission to be transferred to the then FSA, and to provide for the Friendly Societies Commission to cease to exist. Those subsections are going, but the Government are leaving

“enactments relating to friendly societies which are mentioned in part 1 of schedule 18 to FSMA” and other provisions in section 334 relating to the Friendly Societies Commission. If the Friendly Societies Commission is defunct and has gone or is going— I think it has gone—why are we retaining subsections (3) and (4)?

Photo of Mark Hoban Mark Hoban The Financial Secretary to the Treasury

Clause 50 addresses functions that were transferred to the FSA when FSMA was enacted in 2000. Clearly, given that those functions are now with the FSA, part 21 is no longer required. The listed bodies, such as the Registry of Friendly Societies, the Building Societies Commission and the Building Societies Investor Protection Board, are now defunct, so there is no point in retaining those sections.

As the hon. Gentleman touched on, section 334 (3) and (4) of the 2000 Act addresses amendments to legislation. Those subsections, therefore, need to stay in force. If we repeal subsections (3) and (4), the amendments that they permit would also have to be repealed, which we do not want. If we want to retain those amendments, subsections (3) and (4) must remain. The drafting has been carefully designed to ensure that what needs to remain in force remains in force.

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury)

I am grateful to the Minister for that explanation, or I think I am. I read the clause slightly differently, as if some of the Friendly Societies Commission provisions will continue for an organisation that is no longer extant. I take the Minister’s assurance on that.

Question put and agreed to.

Clause 50 accordingly ordered to stand part of the Bill.