New Schedule 2 - Pensions Guidance

Part of Pension Schemes Bill – in a Public Bill Committee at 3:45 pm on 4th November 2014.

Alert me about debates like this

Additional modifications

Sections 138G and 138H

Treat the references to a rule-making instrument as references to a standard-making instrument.

Section 138I

Treat—

(a) subsection (1)(a) as if it were omitted;

(b) subsection (2)(d) as if it referred to an explanation of the FCA’s reasons for believing that setting the proposed standards would secure an appropriate degree of protection for recipients of pensions guidance from designated guidance providers.

Section 138L

Treat the reference in subsection (1) to consumers (as defined in section 425A) as a reference to recipients of pensions guidance from designated guidance providers.

333H Monitoring of compliance with standards by designated guidance providers

(1) The FCA must maintain arrangements for monitoring compliance by designated guidance providers with the standards set under section 333G.

(2) Sections 165 and 167 apply for the purpose of enabling the FCA to monitor compliance but as if—

(a) references to an authorised person or a former authorised person were references to a designated guidance provider or a former designated guidance provider;

(b) section 165(7)(b) to (d) were omitted;

(c) the reference in section 167(5A)(b) to the FCA or the PRA were a reference to the FCA.

(3) Section 175 applies as if a power that the FCA or an investigator has by virtue of subsection (2) were a power under Part 11.

(4) Section 177 applies as if a requirement imposed by virtue of subsection (2) were a requirement imposed under Part 11.

(5) References in a provision of Part 11 to section 165, 167, 175 or 177 include the relevant section as applied with modifications by this section.

333I Failure by designated guidance providers to comply with standards: FCA recommendations

(1) If the FCA considers that a designated guidance provider has failed to comply with a standard set under section 333G the FCA may—

(a) recommend steps that the designated guidance provider might take to prevent the continuance or recurrence of the failure or to make redress to those affected by the failure, and

(b) having made such a recommendation, recommend that the Treasury give a direction under section 333L.

(2) The FCA must publish a recommendation made under subsection (1)(b) unless the FCA considers that to do so—

(a) would be against the public interest, or

(b) would be inappropriate for some other reason.

(3) If the condition in subsection (2)(a) or (b) is satisfied in relation to a recommendation but would not be satisfied if the FCA published part only of the recommendation, the FCA may publish that part.

333J FCA policy on making recommendations under section 333I

(1) The FCA must prepare and issue a statement of its policy with respect to the making of recommendations under section 333I.

(2) The FCA may at any time alter or replace a statement issued under this section.

(3) If a statement issued under this section is altered or replaced, the FCA must issue the altered or replaced statement.

(4) The FCA may issue a statement under this section only with the consent of the Treasury.

(5) A statement issued under this section must be published by the FCA in the way appearing to the FCA to be best calculated to bring it to the attention of the public.

(6) The FCA may charge a reasonable fee for providing a person with a copy of the statement.

333K FCA policy on making recommendations under section 333I: procedure

(1) Before issuing a statement under section 333J, the FCA must—

(a) consult the Treasury, and

(b) publish a draft of the proposed statement in the way appearing to the FCA to be best calculated to bring it to the attention of the public.

(2) The draft must be accompanied by notice that representations about the proposal may be made to the FCA within a specified time.

(3) Before issuing the proposed statement, the FCA must have regard to any representations made to it within the specified time.

(4) If the FCA issues the proposed statement it must publish an account, in general terms, of—

(a) the representations made to it within the specified time, and

(b) its response to them.

(5) If the statement differs from the draft published under subsection (1)(b) in a way which is, in the opinion of the FCA, significant, the FCA must (in addition to complying with subsection (4)) publish details of the difference.

(6) The FCA may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1)(b).

(7) This section also applies to a proposal to alter or replace a statement.

333L Failure by designated guidance providers to comply with standards: Treasury directions

(1) If the Treasury consider that a designated guidance provider has failed to comply with a standard set under section 333G the Treasury may direct the provider to take such steps as the Treasury consider appropriate—

(a) to prevent the continuance or recurrence of the failure;

(b) to make redress to those affected by the failure.

(2) The Treasury may give a direction under subsection (1) only if the FCA has made a recommendation under section 333I(1)(b) (although the terms of the direction need not be the same as that recommended by the FCA).

(3) The Treasury must—

(a) give notice in writing of a direction under subsection (1), and

(b) send a copy of the notice to the FCA.

(4) The notice must inform the designated guidance provider that representations about why the direction should not be published may be made to the Treasury within a specified time.

(5) Once the time specified under subsection (4) has elapsed, the Treasury must publish the direction unless—

(a) the Treasury consider that to do so would be against the public interest;

(b) having considered representations made by the designated guidance provider within the specified time, the Treasury consider that it would be inappropriate to do so for some other reason.

(6) If the condition in subsection (5)(a) or (b) is satisfied in relation to a direction but would not be satisfied if the Treasury published part only of the direction, the Treasury may publish that part.

(7) A direction under subsection (1) is enforceable, on an application made by the Treasury, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

333M Directions to designated guidance providers under section 333L: relationship with power to revoke a designation

(1) The power conferred by section 333L(1) is exercisable in addition to, or instead of, the power conferred by section 333E(3) to revoke a designation.

(2) If the power in section 333E(3) is exercised before the power in section 333L(1) the reference in section 333L(1) to a designated guidance provider is to be read as a reference to a person who, at the time of the failure to comply, was a designated guidance provider.

(3) Subsection (1) does not limit the grounds on which the power in section 333E(3) may be exercised.