New Schedule 2 - Pensions Guidance

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

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333P Funding of FCA’s pensions guidance costs

(1) For the purpose of meeting the FCA’s pensions guidance costs the FCA must make rules requiring designated guidance providers, or any specified class of designated guidance provider, to pay to the FCA specified amounts or amounts calculated in a specified way.

(2) Before the FCA publishes a draft of the rules it must consult the Treasury.

(3) The amounts to be paid under the rules may include a component—

(a) to cover the expenses of the FCA in collecting the payments;

(b) to enable the FCA to maintain an adequate reserve.

(4) In this section the “FCA’s pensions guidance costs” means the expenses incurred, or expected to be incurred, by the FCA in connection with the carrying out of the functions conferred on it by this Part other than by section 333Q.

333Q Funding of Treasury’s pensions guidance costs

(1) The Treasury must, from time to time, notify the FCA of the amount of the Treasury’s pensions guidance costs.

(2) Having been so notified, the FCA must make rules requiring authorised persons, or any specified class of authorised person, to pay to the FCA specified amounts or amounts calculated in a specified way with a view to recovering the amount notified under subsection (1).

(3) The amounts to be paid under the rules may include a component to cover the expenses of the FCA in collecting the payments (“collection costs”).

(4) Before the FCA publishes a draft of the rules it must consult the Treasury.

(5) The rules may be made only with the consent of the Treasury.

(6) The Treasury may notify the FCA of matters that they will take into account when deciding whether or not to give consent for the purposes of subsection (5).

(7) The FCA must have regard to any matters notified under subsection (6) before publishing a draft of rules to be made under this section.

(8) The FCA must pay to the Treasury the amounts that it receives under rules made under this section apart from amounts in respect of its collection costs (which it may keep).

(9) The Treasury must pay into the Consolidated Fund the amounts received by them under subsection (8).

(10) In this section the “Treasury’s pensions guidance costs” means the expenses incurred, or expected to be incurred, by the Treasury—

(a) in giving pensions guidance or arranging for it to be given by designated guidance providers,

(b) in meeting the expenses of designated guidance providers incurred in connection with the giving of the guidance (including expenses incurred by virtue of sections 333G(2), 333L and 333P), whether by means of the power conferred by section 333D or otherwise,

(c) in providing services to designated guidance providers to support them in giving the guidance,

(d) in increasing awareness of the availability of the guidance,

(e) in undertaking or commissioning research relating to the giving of the guidance, and

(f) otherwise in connection with the carrying out of its functions under section 333B.

(11) The Treasury may by regulations amend the definition of the “Treasury’s pensions guidance costs” in subsection (10).”

3 In section 1B (the FCA’s general duties), after subsection (7) insert—

“(7A) The FCA’s general functions do not include its general pensions guidance functions (see section 333N(3)).”

4 After section 137FA insert—

“137FB FCA general rules: disclosure of information about the availability of pensions guidance

(1) The FCA must make general rules requiring information about the availability of pensions guidance to be given by the trustees or managers of a relevant pension scheme to members of the scheme with a right or entitlement to cash balance benefits or other money purchase benefits.

(2) Before the FCA publishes a draft of any rules to be made by virtue of this section, it must consult—

(a) the Secretary of State, and

(b) the Treasury.

(3) In determining what provision to include in the rules, the FCA must have regard to any regulations that are for the time being in force under section 113 of the Pension Schemes Act 1993 concerning the giving of information about the availability of pensions guidance to members of pension schemes with a right or entitlement to cash balance benefits or other money purchase benefits.

(4) In this section—

“cash balance benefits” has the meaning given by section 152(5) of the Finance Act 2004;

“money purchase benefits” has the meaning given by section 152(4) of the Finance Act 2004;

“pensions guidance” means pensions guidance given by virtue of Part 20A;

“relevant pension scheme” means a pension scheme set up by a person with permission under this Act to establish—

(a) a personal pension scheme within the meaning of an order under section 22, or

(b) a stakeholder pension scheme within the meaning of such an order.”

5 In section 138I (rules: consultation by the FCA)—

(a) in subsection (6) (exemption from requirement to carry out a cost benefit analysis), after paragraph (a) insert—

“(aa) section 137FB;”;

(b) in that subsection, after paragraph (c) insert—

“(ca) section 333P;

(cb) section 333Q;”;

(c) in subsection (10) (rules to which requirement to consult the PRA does not apply), after “apply to” insert “—

(a) rules made by the FCA under section 137FB, 333P or 333Q, or

(b) ”.

6 In section 139A (power of the FCA to give guidance), after subsection (1) insert—

“(1A) The FCA may not give guidance under this section relating to its functions under sections 333G, 333H, 333I, 333J and 333P (see section 333O for provision about the giving of guidance relating to these functions).”

7 In section 140A (competition scrutiny: interpretation), in subsection (1), in paragraph (a) of the definition of “regulating provisions”—

(a) in sub-paragraph (ii), after “section 139B(5)” insert “or 333O(9)”;

(b) after sub-paragraph (iv) insert—

“(v) standards set under section 333G;

(vi) statement issued by the FCA under 333J;”.

8 In section 168 (appointment of persons to carry out investigations in particular cases), in subsection (2)(a), after “section 24(1)” insert “or 333F”.

9 In section 429 (Parliamentary control of statutory instruments), in subsection (2) (regulations subject to the affirmative resolution procedure), for “or 262” substitute “, 262, 333C or 333Q”.

10 In Schedule 1ZA (the FCA), in paragraph 8 (arrangements for discharging functions)—

(a) in sub-paragraph (3) (legislative functions that must be exercised by the FCA acting through its governing body), in paragraph (c)(i), for “or 312J” substitute “, 312J or 333J”;

(b) in sub-paragraph (3), after paragraph (d) insert—

“(e) setting standards under section 333G.”

(c) in sub-paragraph (4), after “section 139B(5)” insert “or 333O(9)”.

11 In that Schedule, in paragraph 11 (annual report), in sub-paragraph (1) (matters to be covered in the report), after paragraph (ha) insert—

“(hb) how, in its opinion, it has complied with its duties in section 333N,”.

12 In that Schedule, in paragraph 23 (fees)—

(a) in sub-paragraph (1), in the opening words, after “of this Act” insert “other than sections 333P and 333Q”;

(b) in sub-paragraph (1)(a), after “functions” insert “, other than its excepted functions,”;

(c) in sub-paragraph (2)(a), after “(ca)” insert “but not its excepted functions”;

(d) after sub-paragraph (2) insert—

“(2ZA) The “excepted functions” of the FCA are—

(a) its functions under sections 333E to 333P, and

(b) its functions under section 333Q so far as relating to the collection of payments.”

13 In section 85 of the Financial Services Act 2012 (relevant functions in relation to scheme for investigating complaints against FCA and other regulators), in subsection (4) (legislative functions of the FCA that are excluded)—

(a) in paragraph (c)(i), for “or 312J” substitute “, 312J or 333J”;

(b) in paragraph (e), after “139B(5)” insert “or 333O(9)”;

(c) after paragraph (e) insert—

“(f) setting standards under section 333G of FSMA 2000.”

14 (1) For the purpose of the exercise of a function conferred by a provision listed in the first column of the table, a consultation requirement listed in the corresponding entry in the second column may be satisfied by things done before the day on which this Act is passed.