Financial Guidance and Claims Act 2018

• (9) In subsection (8) “the first interim period” is the period—

• (a) beginning with the day on which this section comes into force, and

• (b) ending with the day before the day on which the first section 22(1B) specified activity provisions come into force for (or for purposes which include) the purposes of the general prohibition in section 19 of the Financial Services and Markets Act 2000.

PPI claims: interim restriction on charges imposed by authorised persons after transfer of regulation to FCA

31

• (1) The rule specified in subsection (2) is to be treated for the purposes of the Financial Services and Markets Act 2000 as if—

• (a) the rule were a general rule made by the FCA under section 137A of that Act, and

• (b) this section were contained in that Act;

and accordingly functions conferred on the FCA by that Act which apply in relation to general rules made under section 137A apply to that rule as they apply to other general rules made under that section.

• (2) The rule is that an authorised person—

• (a) must not charge a claimant, for a service which is a regulated claims management activity provided in connection with the claimant's PPI claim, an amount which exceeds the fee cap for the claim, and

• (b) must not enter into an agreement that provides for the payment by a claimant, for a service which is a regulated claims management activity provided in connection with the claimant's PPI claim, of charges which would breach, or are capable of breaching, the prohibition in paragraph (a).

• (3) A breach of either of those prohibitions is not actionable as a breach of statutory duty (despite section 138D(2) of the Financial Services and Markets Act 2000); but—

• (a) any payment in excess of the fee cap for a PPI claim is recoverable by the claimant, and

• (b) any agreement entered into in breach of the prohibition in subsection (2)(b) is not enforceable to the extent it provides for a payment that breaches or is capable of breaching the prohibition in subsection (2)(a).

• (4) In subsection (3) “payment” means a payment of charges for a service which is a regulated claims management activity provided in connection with the claim.

• (5) The rule in subsection (2) applies as follows—

• (a) the prohibition in paragraph (a) applies only to charges imposed under an agreement which is entered into during the second interim period, and

• (b) the prohibition in paragraph (b) applies only to agreements entered into during that period.

• (6) In subsection (5) “the second interim period” is the period—

• (a) beginning with the day on which the first section 22(1B) specified activity provisions come into force for (or for purposes which include) the purposes of the general prohibition in section 19 of the Financial Services and Markets Act 2000, and

• (b) ending with the day before the coming into force of the first relevant general rule made by the FCA (whether for all purposes or for any specific purpose).

• (7) In subsection (6)(b) “relevant general rule” means a general rule that—

• (a) is made under subsection (1) of section 137FD of the Financial Services and Markets Act 2000 (as inserted by this Act), and

• (b) applies to, or to any description of, PPI claims (whether or not it also applies to anything else).

• (8) In this section “authorised person” has the same meaning as in the Financial Services and Markets Act 2000 (see section 31(2) of that Act).

PPI claims: interim restriction on charges imposed by legal practitioners after transfer of regulation to FCA

32

• (1) A legal practitioner—

• (a) must not charge a claimant, for a service which is a relevant claims management activity provided in connection with the claimant's PPI claim, an amount which exceeds the fee cap for the claim, and

• (b) must not enter into an agreement that provides for the payment by a claimant, for a service which is a relevant claims management activity provided in connection with the claimant's PPI claim, of charges which would breach, or are capable of breaching, the prohibition in paragraph (a).

• (2) Subsections (2) to (5) and (7) of section 30 apply for the purposes of the prohibitions in subsection (1) as they apply for the purposes of the prohibitions in section 30(1) but as if—

• (a) references in those subsections to “regulated claims management services” were references to “relevant claims management activity” and references to “regulated persons” were references to “legal practitioners”, and

• (b) the first entry in columns 1 and 2 of the table in subsection (5) were omitted.

• (3) Subsection (1) applies as follows—

• (a) the prohibition in subsection (1)(a) applies only to charges imposed by a legal practitioner under an agreement entered into during the period—

• (i) beginning with the first day of the second interim period (within the meaning given by section 31(6)), and

• (ii) ending with the end date for that practitioner, and

• (b) the prohibition in subsection (1)(b) applies only to agreements entered into by a legal practitioner during that period.

• (4) For the purposes of subsection (3), the end date is—

• (a) for a legal practitioner for whom the relevant regulator is the Law Society of England and Wales, the day before the coming into force of the first rule made by the Law Society of England and Wales under section 33 that applies to, or to any description of, PPI claims, and

• (b) for any other legal practitioner, 29 April 2020.

• (5) In this section “relevant claims management activity”—

• (a) does not include any reserved legal activities of the kind mentioned in section 12(1)(a) or (b) of the Legal Services Act 2007 (exercise of a right of audience or the conduct of litigation), but

• (b) otherwise, means activity of a kind specified in an order under section 22(1B) of the Financial Services and Markets Act 2000 (regulated activities: claims management services), disregarding any exemption in that order for activities carried on by, through, or at the direction of, a legal practitioner.

Legal services regulators’ rules: charges for claims management services

33

• (1) The Law Society of England and Wales, the General Council of the Bar and the Chartered Institute of Legal Executives may make rules prohibiting regulated persons from—

• (a) entering into a specified relevant claims management agreement that provides for the payment by a person of specified charges, and

• (b) imposing specified charges on a person in connection with the provision of a service which is, or which is provided in connection with, a specified relevant claims management activity.

• (2) The Law Society of England and Wales must exercise that power to make rules in relation to all relevant claims management agreements, and all relevant claims management activities, which concern claims in relation to financial products or services.

• (3) The Law Society of Scotland may make rules prohibiting regulated persons from—

• (a) entering into a relevant claims management agreement concerning a claim in relation to a financial product or service that provides for the payment by a person of specified charges, and

• (b) imposing specified charges on a person in connection with the provision of a service which is, or which is provided in connection with, a relevant claims management activity concerning a claim in relation to a financial product or service.

• (4) Rules under this section may make provision securing that for the purposes of the prohibition referred to in subsection (1)(a) or (3)(a) charges payable under a relevant claims management agreement are to be treated as including charges payable under an agreement treated by the rules as being connected with the relevant claims management agreement.

• (5) In this section “regulated persons” means—

• (a) in relation to the Law Society of England and Wales—

• (i) persons who, or licensable bodies which, are authorised by the Law Society to carry on a reserved legal activity,

• (ii) European lawyers registered with the Law Society under the European Communities (Lawyer's Practice) Regulations 2000 (S.I. 2000/1119) , as they have effect by virtue of regulation 6 of the Services of Lawyers and Lawyer’s Practice (Revocation etc.) (EU Exit) Regulations 2020, and

• (iii) foreign lawyers registered with the Law Society under section 89 of the Courts and Legal Services Act 1990;

• (b) in relation to the Law Society of Scotland, Scottish legal practitioners;

• (c) in relation to the General Council of the Bar—

• (i) persons who, or licensable bodies which, are authorised by the General Council to carry on a reserved legal activity, and

• (ii) European lawyers registered with the General Council under the European Communities (Lawyer's Practice) Regulations 2000 , as they have effect by virtue of regulation 6 of the Services of Lawyers and Lawyer’s Practice (Revocation etc.) (EU Exit) Regulations 2020;

• (d) in relation to the Chartered Institute of Legal Executives, persons authorised by the Institute to carry on a reserved legal activity.

• (6) The rules must be made with a view to securing an appropriate degree of protection against excessive charges for the provision of a service which is, or which is provided in connection with, a relevant claims management activity.

• (7) The rules may specify charges by reference to charges of a specified class or description, or by reference to charges which exceed, or are capable of exceeding, a specified amount.

• (8) The rules may not specify—

• (a) charges for a reserved legal activity within the meaning of the Legal Services Act 2007 (see section 12 of that Act);

• (b) charges imposed in respect of—

• (i) the exercise of a right of audience by a Scottish legal practitioner;

• (ii) the conduct of litigation by a Scottish legal practitioner.

• (9) In subsection (8)(b)—

• “conduct of litigation” means—the bringing of proceedings before any court in Scotland;the commencement, prosecution and defence of such proceedings;the performance of any ancillary functions in relation to such proceedings;

• “right of audience” means the right to appear before and address a court in Scotland, including the right to call and examine witnesses.

• (10) In relation to an agreement entered into, or charge imposed, in contravention of the rules, the rules may (amongst other things)—

• (a) provide for the agreement, or obligation to pay the charge, to be unenforceable or unenforceable to a specified extent;

• (b) provide for the recovery of amounts paid under the agreement or obligation;

• (c) provide for the payment of compensation for any losses incurred as a result of paying amounts under the agreement or obligation.

• (11) For the purposes of this section—

• “relevant claims management activity” means activity of a kind specified in an order under section 22(1B) of the Financial Services and Markets Act 2000 (regulated activities: claims management services), disregarding any exemption in that order for activities carried on by, through, or at the direction of, a legal practitioner;

• “relevant claims management agreement” means an agreement, the entering into or performance of which by either party is a relevant claims management activity;

• “Scottish legal practitioner” means—a person qualified to practise as a solicitor in accordance with section 4 of the Solicitors (Scotland) Act 1980;European lawyers registered with the Law Society of Scotland under the European Communities (Lawyer's Practice) (Scotland) Regulations 2000 (S.S.I. 2000/121);foreign lawyers registered with the Law Society of Scotland under section 60A of the Solicitors (Scotland) Act 1980;an incorporated practice within the meaning given by section 34(1A)(c) of the Solicitors (Scotland) Act 1980;a licensed legal services provider within the meaning of Part 2 of the Legal Services (Scotland) Act 2010 (see section 47 of that Act) that provides, or offers to provide, legal services under a licence issued by the Law Society of Scotland;

• “specified” means specified in the rules, but “specified amount” means an amount specified in or determined in accordance with the rules.

• (12) This section does not limit any power of the Law Society of England and Wales, the Law Society of Scotland, the General Council of the Bar or the Chartered Institute of Legal Executives existing apart from this section to make rules.

Extension of power of the Law Society of Scotland to make rules

34

• (1) The Treasury may by regulations amend section 33 for the purpose of extending the power in subsection (3) of that section so as to apply to—

• (a) all relevant claims management agreements;

• (b) all relevant claims management activity;

• (c) any description of relevant claims management agreement;

• (d) any description of relevant claims management activity.

• (2) The Treasury must obtain the consent of the Scottish Ministers before making regulations under subsection (1).

• (3) Regulations under this section—

• (a) are to be made by statutory instrument;

• (b) may make incidental, supplemental or consequential provision.

• (4) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

Cold calling about claims management services

Cold calling about claims management services

35

• (1) The Privacy and Electronic Communications (EC Directive) Regulations 2003 (S.I. 2003/2426) are amended as follows.

• (2) In regulation 21 (calls for direct marketing purposes), after paragraph (5) insert—

(6) Paragraph (1) does not apply to a case falling within regulation 21A.

• (3) After regulation 21 insert—

(21A) (1) A person must not use, or instigate the use of, a public electronic communications service to make unsolicited calls for the purposes of direct marketing in relation to claims management services except in the circumstances referred to in paragraph (2). (2) Those circumstances are where the called line is that of a subscriber who has previously notified the caller that for the time being the subscriber consents to such calls being made by, or at the instigation of, the caller on that line. (3) A subscriber must not permit the subscriber's line to be used in contravention of paragraph (1). (4) In this regulation, “claims management services” means the following services in relation to the making of a claim— (a) advice; (b) financial services or assistance; (c) acting on behalf of, or representing, a person; (d) the referral or introduction of one person to another; (e) the making of inquiries. (5) In paragraph (4), “claim” means a claim for compensation, restitution, repayment or any other remedy or relief in respect of loss or damage or in respect of an obligation, whether the claim is made or could be made— (a) by way of legal proceedings, (b) in accordance with a scheme of regulation (whether voluntary or compulsory), or (c) in pursuance of a voluntary undertaking.

• (4) In regulation 24 (information to be provided for the purposes of regulations 19 to 21)—

• (a) in the heading, for “, 20 and 21” substitute “ to 21A ”;

• (b) in paragraph (1)(b), after “21” insert “ or 21A ”.

PART 3 — General

Extent

36

• (1) Part 1, other than the provisions mentioned in subsections (2) to (5), extends to England and Wales, Scotland and Northern Ireland.

• (2) Sections 6 and 7 extend to England and Wales and Northern Ireland.

• (3) In section 12—

• (a) subsections (1) and (3) extend to England and Wales and Scotland;

• (b) subsections (2) and (4) extend to Northern Ireland.

• (4) In section 19—

• (a) subsections (1) to (5) extend to England and Wales and Scotland;

• (b) subsections (6) to (9) extend to Northern Ireland.

• (5) Paragraph 24 of Schedule 3 extends to England and Wales and Scotland.

• (6) Part 2, other than the provisions mentioned in subsections (7) and (8), extends to England and Wales and Scotland.

• (7) The following provisions extend to England and Wales—

• (a) section 27(14) and Schedule 4;

• (b) section 30;

• (c) section 32.

• (8) Section 35 extends to England and Wales, Scotland and Northern Ireland.

• (9) This Part extends to England and Wales, Scotland and Northern Ireland.

Commencement

37

• (1) The following provisions come into force on the day this Act is passed—

• (a) section 11(1) and (3);

• (b) section 12;

• (c) section 13;

• (d) section 21;

• (e) the following paragraphs of Schedule 3 (and section 25 so far as it relates to those paragraphs)—

• (i) paragraph 5,

• (ii) paragraph 13(a),

• (iii) paragraph 14(1), (2)(a) and (3)(a), and

• (iv) paragraph 21(1), (5)(a)(i) and (5)(b)(iii);

• (f) section 27(15) and Schedule 5;

• (g) this Part.

• (2) Subsections (6) to (9) of section 19 come into force on a day appointed by order made by the Department for Communities in Northern Ireland.

• (3) An order under subsection (2) may make—

• (a) transitional, transitory and saving provision in connection with the coming into force of any provision in section 19(6) to (9);

• (b) incidental and supplementary provision, and

• (c) different provision for different purposes,

and the power to make such an order is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

• (4) Sections 22 and 29 to 32 come into force at the end of the period of two months beginning with the day on which this Act is passed.

• (5) The other provisions of this Act come into force on a day appointed by regulations.

• (6) Regulations under subsection (5) must provide for sections 6 and 7 to come into force on the same day as section 1(1).

• (7) Regulations may make transitional, transitory and saving provision in connection with the coming into force of any provision of Part 1 or 2 except section 19(6) to (9).

• (8) Regulations under subsection (5) or (7) may make—

• (a) incidental and supplementary provision,

• (b) different provision for different purposes, and

• (c) different provision for different areas.

• (9) Regulations under subsection (5) or (7) are to be made by statutory instrument by—

• (a) the Secretary of State, in relation to—

• (i) any provision of Part 1, other than section 14 and section 20, and

• (ii) section 35;

• (b) the Treasury, in relation to—

• (i) sections 14 and 20, and

• (ii) any provision of Part 2, other than section 35.

• (10) The Treasury must obtain the consent of the Lord Chancellor before making regulations under subsection (5) or (7) in relation to section 33.

Short title

38

This Act may be cited as the Financial Guidance and Claims Act 2018.

SCHEDULE 1

Status

1

• (1) The single financial guidance body is not to be regarded—

• (a) as a servant or agent of the Crown, or

• (b) as enjoying any status, immunity or privilege of the Crown.

• (2) The members and employees of the single financial guidance body are not to be regarded as Crown servants.

Members: general

2

• (1) The single financial guidance body is to consist of—

• (a) a chair (who is to be a non-executive member of the body) appointed by the Secretary of State,

• (b) other non-executive members appointed by the Secretary of State, and

• (c) executive members, appointed in accordance with paragraph 6.

• (2) The Secretary of State and the non-executive members must ensure, so far as practicable, that the number of non-executive members is at all times greater than the number of executive members.

Non-executive members: tenure

3

• (1) The non-executive members hold and vacate office in accordance with the terms of their appointment (subject to this Schedule).

• (2) A non-executive member may resign by notice in writing to the Secretary of State.

• (3) The Secretary of State may remove a non-executive member from office by notice if the Secretary of State is satisfied that the member—

• (a) has a conflict of interest (see paragraph 4),

• (b) has at any time been the subject of a bankruptcy order or has had his or her estate sequestrated,

• (c) has at any time made a composition or arrangement with, or granted a trust deed for, his or her creditors,

• (d) has at any time been convicted of any offence involving dishonesty or deception,

• (e) is unfit for office by reason of misconduct,

• (f) has failed to comply with the terms of his or her appointment,

• (g) has without reasonable excuse failed to discharge the functions of his or her office, or

• (h) is otherwise incapable of discharging, or unfit or unwilling to discharge, the functions of his or her office.

Non-executive members: conflicts of interest

4

• (1) Before appointing a person to be a non-executive member, the Secretary of State must be satisfied that the person does not have a conflict of interest.

• (2) A non-executive member, or a person the Secretary of State proposes to appoint as a non-executive member, must provide the Secretary of State with such information as the Secretary of State requires from the person in order to determine whether the person has a conflict of interest (whether for the purposes of sub-paragraph (1) or paragraph 3(3)(a)).

• (3) In this Schedule, “conflict of interest”, in relation to a person, means a financial or other interest which is likely to affect prejudicially the discharge by the person of his or her functions as a member or employee of the single financial guidance body, or as a member of a committee or sub-committee of the single financial guidance body.

Non-executive members: remuneration etc

5

• (1) The single financial guidance body may—

• (a) pay to the non-executive members such remuneration, and

• (b) pay to or in respect of the non-executive members such sums by way of or in respect of allowances and gratuities,

as the Secretary of State may determine.

• (2) Where—

• (a) a person whose term of office as a non-executive member has not expired ceases to hold that office, and

• (b) the Secretary of State thinks there are special circumstances that make it right for the person to receive compensation,

the single financial guidance body may make a payment to the person of such amount as the Secretary of State may determine.

Executive members: appointment

6

• (1) Before the date on which the single financial guidance body first starts to provide services to members of the public, the Secretary of State must appoint—

• (a) a person to be the chief executive of the single financial guidance body, and

• (b) other persons to be the executive members of the body.

• (2) Appointments of executive members (including the chief executive) made on or after the date on which the single financial guidance body first starts to provide services to members of the public are to be made by the single financial guidance body, with the approval of the Secretary of State.

Executive members: terms and conditions

7

• (1) The executive members are to be employees of the single financial guidance body.

• (2) Executive members appointed under paragraph 6(1) are to be employed by the single financial guidance body on such terms and conditions, including those as to remuneration, as the Secretary of State may determine.

• (3) Executive members appointed under paragraph 6(2) are to be employed by the single financial guidance body on such terms and conditions, including those as to remuneration, as the body may determine, with the approval of the Secretary of State.

• (4) The single financial guidance body must—

• (a) pay to or in respect of the executive members such pensions, allowances and gratuities, or

• (b) provide and maintain for them such pension schemes (whether contributory or not),

as the body may determine, with the approval of the Secretary of State.

Other staff: appointment, terms and conditions

8

The single financial guidance body may appoint other employees on such terms and conditions, including those as to remuneration and pension arrangements, as the single financial guidance body may determine.

Committees

9

• (1) The single financial guidance body may—

• (a) establish a committee for the purpose of discharging any of its functions, and

• (b) establish a committee for the purpose of giving advice to the body about matters relating to the discharge of its functions.

• (2) A committee may consist of or include persons who are neither members nor employees of the single financial guidance body.

• (3) But a committee that discharges any functions of the single financial guidance body, by virtue of sub-paragraph (1)(a) or paragraph 10, must include at least one person who is either a member or an employee of the single financial guidance body.

• (4) Where a person who is neither a member nor an employee of the single financial guidance body is a member of a committee, the body may pay to that person such remuneration and expenses as it may determine.

• (5) A committee may establish a sub-committee.

• (6) A sub-committee must include at least one person who is a member of the committee that established it.

• (7) A sub-committee that discharges any functions of the single financial guidance body must include at least one person who is either a member or an employee of the single financial guidance body.

Delegation

10

• (1) The single financial guidance body may delegate any function conferred on it to—

• (a) a committee,

• (b) a member, or

• (c) an employee.

• (2) A committee may delegate any function conferred on it to—

• (a) a sub-committee,

• (b) a member of the committee,

• (c) a member of the single financial guidance body, or

• (d) an employee of the single financial guidance body.

Procedure etc

11

• (1) The single financial guidance body may regulate its own procedures (including quorum) and the procedures of its committees and sub-committees.

• (2) The single financial guidance body's procedures must include arrangements for dealing with conflicts of interests of members, employees and members of committees and sub-committees, which must oblige a person who has or may have a conflict of interest—

• (a) to declare any financial or other personal interest relevant to the exercise of a function, and

• (b) to withdraw from the exercise of the function, unless the single financial guidance body directs otherwise, being satisfied that the interest will not influence the exercise of the function.

For the meaning of “conflict of interest” in this Schedule, see paragraph 4(3).

• (3) The single financial guidance body must publish details of its procedures and the procedures of its committees and sub-committees.

• (4) The single financial guidance body must make arrangements for the keeping of proper records—

• (a) of its proceedings,

• (b) of the proceedings of its committees and sub-committees,

• (c) of anything done by a person to whom functions have been delegated (see paragraph 10).

Validity of acts

12

A defect in appointment does not affect the validity of things done by a member of the single financial guidance body.

Authentication of seal

13

• (1) The application of the single financial guidance body's seal must be authenticated by the signature of—

• (a) a member of the single financial guidance body, or

• (b) some other person who has been authorised by the single financial guidance body for that purpose (whether generally or specifically).

• (2) A document appearing to be duly sealed or signed on behalf of the single financial guidance body is to be received in evidence and, unless the contrary is proved, is to be taken to be duly signed or sealed.

• (3) This paragraph does not apply to Scotland.

Reports and accounts

14

• (1) As soon as reasonably practicable after the end of each financial year, the single financial guidance body must send to the Secretary of State a report on the exercise of the single financial guidance body's functions during that year.

• (2) The report must include—

• (a) a report on the proceedings of the single financial guidance body during the year, and

• (b) such other information as the Secretary of State may direct.

• (3) On receiving the report, the Secretary of State must lay it before Parliament.

• (4) The single financial guidance body must—

• (a) keep proper accounting records, and

• (b) prepare a statement of accounts in respect of each financial year.

• (5) The statement must be in such form as the Secretary of State may direct.

• (6) The single financial guidance body must send a copy of the statement of accounts to—

• (a) the Secretary of State, and

• (b) the Comptroller and Auditor General,

within the time period directed by the Secretary of State.

• (7) The Comptroller and Auditor General must—

• (a) examine, certify and report on the statement of accounts, and

• (b) send a copy of the report to the Secretary of State.

• (8) The Secretary of State must lay before Parliament the statement of accounts and the report of the Comptroller and Auditor General.

• (9) In this paragraph, “financial year” means—

• (a) the period beginning with the day on which this Schedule comes into force and ending with the following 31st March, and

• (b) every subsequent period of 12 months ending with 31st March.

SCHEDULE 2

Power to make transfer schemes

1

• (1) The Secretary of State may make one or more schemes providing for the transfer of designated property, rights and liabilities of the Secretary of State and the Pensions Advisory Service Limited to the single financial guidance body.

• (2) The Secretary of State may make one or more schemes providing for the transfer of designated property, rights and liabilities of the consumer financial education body to the single financial guidance body and the devolved authorities.

• (3) The rights and liabilities that may be transferred by a scheme include rights and liabilities under a contract of employment.

• (4) For that purpose—

• (a) an individual who holds employment in the civil service of the State is to be treated as employed by virtue of a contract of employment; and

• (b) the terms on which the individual holds that employment are to be regarded as constituting the terms of that contract.

• (5) In this Schedule—

• “designated” means specified in, or determined in accordance with, the scheme;

• “property” includes interests of any description.

Contents of a scheme

2

• (1) A scheme under this Schedule may, in particular, make provision—

• (a) for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the transferee;

• (b) for references (however expressed) to the transferor in any agreement, instrument or other document relating to property, rights or liabilities transferred by the scheme to be treated as references to the transferee;

• (c) about the continuation of legal proceedings;

• (d) for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

• (e) for transferring property, rights or liabilities irrespective of any requirement for consent which would otherwise apply;

• (f) for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

• (g) for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

• (h) for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

• (i) for apportioning property, rights or liabilities;

• (j) for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

• (k) for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme;

• (l) that is the same as or similar to provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), if those Regulations do not apply to the transfer.

• (2) Sub-paragraph (1)(b) does not apply to references in any of the following—

• (a) an Act of Parliament;

• (b) an Act of the Scottish Parliament;

• (c) an Act or Measure of the National Assembly for Wales;

• (d) Northern Ireland legislation;

• (e) subordinate legislation within the meaning of the Interpretation Act 1978 (see section 21(1) of that Act);

• (f) an instrument made under legislation of the kind mentioned in paragraph (b), (c) or (d).

• (3) In sub-paragraph (1)(b), “agreement” includes an agreement that is not in writing.

Modifications to a scheme

3

• (1) The Secretary of State may modify a scheme made under this Schedule; but a modification relating to a transfer that has taken effect may be made only with the agreement of the person (or persons) affected by the modification.

• (2) A modification takes effect from such date as the Secretary of State may specify (which may be the date when the original scheme came into effect).

Supplementary

4

A scheme may—

• (a) contain incidental, supplementary and consequential provisions;

• (b) make transitory or transitional provision or savings;

• (c) make different provision for different purposes;

• (d) make provision subject to exceptions.

SCHEDULE 3

Public Records Act 1958 (c. 51)

1

In Schedule 1 to the Public Records Act 1958 (definition of public records), in paragraph 3, in Part 2 of the Table, at the appropriate place insert— “ The single financial guidance body. ”

Parliamentary Commissioner Act 1967 (c. 13)

2

In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation), at the appropriate place insert— “ The single financial guidance body. ”

House of Commons Disqualification Act 1975 (c. 24)

3

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), at the appropriate place insert— “ The single financial guidance body. ”

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

4

In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies of which all members are disqualified), at the appropriate place insert— “ The single financial guidance body. ”

Financial Services and Markets Act 2000 (c. 8)

5

The Financial Services and Markets Act 2000 is amended as follows.

6

In section 1A(6) (functions of the FCA), after paragraph (c) insert—

(cza) the Financial Guidance and Claims Act 2018,

.

7

In section 1B (FCA's general duties), omit subsection (7A).

8

In section 1C (the consumer protection objective), in subsection (2), omit paragraph (g).

9

In section 1M (FCA's general duty to consult), omit the words “and its duties under section 333O”.

10

In section 1S (reviews), in subsection (3) omit the words “or its duties under section 333O(1) and (2)(a)”.

11

In section 3R (arrangements for provision of services), in subsection (4), for paragraph (a) substitute—

(a) the single financial guidance body (see Part 1 of the Financial Guidance and Claims Act 2018),

.

12

Omit section 3S (the consumer financial education body).

13

In section 138F (notification of rules), in subsection (2) (exceptions to notification)—

• (a) after “, 137FBA” insert “ , 137SA ”;

• (b) before “, 137SA” (inserted by paragraph (a)), insert “ , 137FC ”;

• (c) after “, 137SA” insert “ , 137SB ”;

• (d) omit “, 333Q, 333R”.

14

• (1) Section 138I (consultation on rules by FCA) is amended as follows.

• (2) In subsection (6) (exception to requirement to carry out cost benefit analysis)—

• (a) after paragraph (ab) insert—

(ad) section 137SA;

;

• (b) before paragraph (ad) (inserted by paragraph (a)), insert—

(ac) section 137FC;

;

• (c) after paragraph (ad) insert—

(ae) section 137SB;

;

• (d) omit paragraphs (ca), (cb) and (e).

• (3) In subsection (10) (exception to requirement to consult PRA before making rules)—

• (a) after “137FBA” insert “ , 137SA ”;

• (b) before “, 137SA” (inserted by paragraph (a)), insert “ , 137FC ”;

• (c) after “, 137SA” insert “ , 137SB ”;

• (d) omit “, 333Q, 333R”.

15

In section 138J (consultation on rules by PRA), in subsection (6), omit paragraph (e).

16

In section 139A (power of FCA to give guidance), omit subsection (1A).

17

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

• (a) in sub-paragraph (ii), omit “or 333P(9)”;

• (b) omit sub-paragraphs (v) and (vi).

18

In section 168 (appointment of persons to carry out investigations), in subsection (2)(a), omit “or 333G”.

19

Omit Part 20A (sections 333A to 333R; pensions guidance).

20

In section 429 (Parliamentary control of statutory instruments), in subsection (2), omit “, 333C, 333R”.

21

• (1) Schedule 1ZA (the Financial Conduct Authority) is amended as follows.

• (2) In paragraph 8 (arrangements for discharging functions)—

• (a) in sub-paragraph (3)—

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

• (ii) omit paragraph (e);

• (b) after sub-paragraph (3), insert—

(3A) In exercising its functions under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018 (approving and reviewing standards set by single financial guidance body), the FCA must act through its governing body.

;

• (c) in sub-paragraph (4), omit “or 333P(9)”.

• (3) In paragraph 11 (annual report), in sub-paragraph (1)—

• (a) omit paragraph (hb);

• (b) omit the “and” at the end of paragraph (i), and after that paragraph insert—

(ia) how, in its opinion, it has complied with its duties under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018, and

.

• (4) In paragraph 21 (financial penalty scheme), in sub-paragraph (2)—

• (a) at the end of paragraph (c) insert “ and ”;

• (b) omit paragraph (e) (and the word “and” immediately preceding it).

• (5) In paragraph 23 (fees)—

• (a) in sub-paragraph (1)—

• (i) after “sections” insert “ 137SA, ”;

• (ii) after “137SA” insert “ , 137SB ”;

• (iii) omit “, 333Q, 333R”;

• (b) in sub-paragraph (2ZA)—

• (i) omit paragraph (a) (and the word “and” immediately following it);

• (ii) in paragraph (b), for “sections 333R and 333T” substitute “ section 333T ”;

• (iii) after paragraph (b), insert

, and (c) its functions under section 137SA.

;

• (iv) in paragraph (c) (inserted by sub-paragraph (iii)), for “section 137SA” substitute “ sections 137SA and 137SB ”.

22

Omit Schedule 1A (further provision about the consumer financial education body).

Freedom of Information Act 2000 (c. 36)

23

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities: general), at the appropriate place insert—

The single financial guidance body.

Equality Act 2010 (c. 15)

24

In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “Industry, business, finance etc”, at the appropriate place insert—

The single financial guidance body.

Financial Services Act 2010 (c. 28)

25

The Financial Services Act 2010 is amended as follows.

26

In section 2 (enhancing public understanding of financial matters etc), omit subsections (1) and (6).

27

Omit Schedule 1 (further provision about the consumer financial education body).

Financial Services Act 2012 (c. 21)

28

The Financial Services Act 2012 is amended as follows.

29

Omit section 45 and Schedule 15 (the consumer financial education body).

30

In section 85 (relevant functions in relation to complaints scheme)—

• (a) in subsection (2)(a), after “legislative functions” insert “ and its standards review functions ”;

• (b) in subsection (4)—

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

• (ii) in paragraph (e), omit “or 333P(9)”;

• (iii) omit paragraph (f).

• (c) After subsection (4) insert—

(4A) For the purposes of subsection (2)(a), the FCA's standards review functions are the FCA's functions under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018 (approving and reviewing standards set by single financial guidance body).

Pension Schemes Act 2015 (c. 8)

31

In Schedule 3 to the Pension Schemes Act 2015 (pensions guidance), omit paragraphs 2 to 5, 8(b), 9 to 11, 13 to 15 and 17.

Bank of England and Financial Services Act 2016 (c. 14)

32

In the Bank of England and Financial Services Act 2016, omit section 32 (amendments to section 333A of FSMA; pensions guidance).

SCHEDULE 4

PART 1 — APPLICATION AND INTERPRETATION

1

This Schedule applies if the Treasury make an order under section 22(1B) of the Financial Services and Markets Act 2000 which has the effect that an activity—

• (a) becomes a regulated activity for the purposes of that Act, and

• (b) ceases to be a regulated service under Part 2 of the Compensation Act 2006 (see section 4(2)(e) of that Act).

2

In this Schedule—

• “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

• “the FCA” means the Financial Conduct Authority;

• “the FOS” means the body corporate which administers the ombudsman scheme provided for in Part 16 of the Financial Services and Markets Act 2000 (see section 225 of that Act);

• “the OLC” means the Office for Legal Complaints established by section 114 of the Legal Services Act 2007;

• “the Regulator” means the person designated under section 5(1) of the Compensation Act 2006 or, if no person is so designated, the Secretary of State.

PART 2 — TRANSFER OF PROPERTY AND STAFF FROM THE REGULATOR TO THE FCA

Power of Secretary of State to make transfer schemes

3

The Secretary of State may, with the consent of the FCA, make one or more schemes for the transfer of property, rights and liabilities of the Regulator to the FCA.

Transfer of property, rights and liabilities

4

The following provisions of this Part of this Schedule apply in relation to schemes under paragraph 3 (“transfer schemes”).

5

The property, rights and liabilities which are the subject of a transfer scheme are transferred in accordance with the provisions of the scheme on such day as the scheme may specify.

6

The property, rights and liabilities that may be the subject of a transfer scheme include—

• (a) any that would not otherwise be capable of being transferred or assigned,

• (b) rights and liabilities under a contract of employment, and

• (c) amounts in respect of fees paid under the Compensation (Claims Management Services) Regulations 2006 (S.I. 2006/3322).

7

For the purpose of paragraph 6(b)—

• (a) an individual who holds employment in the civil service of the State is to be treated as employed by virtue of a contract of employment, and

• (b) the terms on which the individual holds that employment are to be regarded as constituting the terms of that contract.

Contents of a transfer scheme

8

• (1) A transfer scheme may—

• (a) provide for anything done before the transfer by or in relation to the Regulator in connection with any property, rights or liabilities transferred by the scheme to be treated as having been done by or in relation to the FCA;

• (b) contain provision for the payment by the FCA of compensation to the Regulator for costs incurred (before or after the transfer) in connection with the transfer or the exercise of functions in relation to the regulation of claims management services;

• (c) contain provision for the payment of compensation by the FCA to any person whose interests are adversely affected by the transfer scheme;

• (d) make provision that is the same as or similar to provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), if those Regulations do not apply to the transfer.

• (2) An obligation of the FCA to make a compensation payment or to meet a liability transferred under provision in a transfer scheme is to be treated for the purposes of paragraph 23 of Schedule 1ZA to the Financial Services and Markets Act 2000 (fees) as a qualifying function conferred on the FCA under that Act.

Supplementary

9

A transfer scheme may—

• (a) contain supplementary, incidental and consequential provision;

• (b) make transitory or transitional provision or savings;

• (c) make different provision for different purposes;

• (d) make provision subject to exceptions.

Modification of a transfer scheme

10

Subject to paragraph 11, the Secretary of State may, with the consent of the FCA, modify a transfer scheme.

11

A modification relating to a transfer that has taken effect may be made only with the agreement of the person (or persons) affected by the modification.

12

A modification takes effect from such date as the Secretary of State may specify, and that date may be the date when the original scheme came into effect.

PART 3 — TRANSFER OF PROPERTY AND STAFF FROM THE OLC TO THE FOS

Power of OLC to make transfer schemes

13

The OLC may make one or more schemes for the transfer of property, rights and liabilities of the OLC to the FOS.

14

A scheme made under paragraph 13 is not to be capable of coming into force unless it is approved by the Treasury and the Lord Chancellor.

15

The OLC may not submit a scheme to the Treasury or the Lord Chancellor for approval under paragraph 14 without the consent of the FOS and the FCA.

Power of Lord Chancellor to make transfer schemes

16

Paragraph 17 applies if the OLC fails to make a scheme under paragraph 13 in circumstances where the Lord Chancellor considers that it is necessary for such a scheme to be made.

17

The Lord Chancellor may, with the approval of the Treasury, the OLC, the FOS and the FCA, make a scheme for the transfer of property, rights and liabilities of the OLC to the FOS.

Provision of information and assistance by OLC

18

The OLC must provide the Treasury and the Lord Chancellor with all such information and other assistance as either of them may reasonably require for the purposes of, or otherwise in connection with, the exercise of their powers under this Part of this Schedule.

19

Paragraph 18 is subject to any express restriction on disclosure imposed by the data protection legislation (ignoring any restriction which allows disclosure if authorised by an enactment).

Transfer of property, rights and liabilities

20

The following provisions of this Part of this Schedule apply in relation to schemes under paragraph 13 or 17 (“transfer schemes”).

21

The property, rights and liabilities which are the subject of a transfer scheme are transferred in accordance with the provisions of the scheme on such day as the scheme may specify.

22

The property, rights and liabilities that may be the subject of a transfer scheme include—

• (a) any that would not otherwise be capable of being transferred or assigned, and

• (b) rights and liabilities under a contract of employment.

Contents of a transfer scheme

23

• (1) A transfer scheme may—

• (a) provide for anything done before the transfer by or in relation to the OLC in connection with any property, rights or liabilities transferred by the scheme to be treated as having been done by or in relation to the FOS;

• (b) contain provision for the payment by the FOS of compensation to the OLC or the Regulator for costs incurred (before or after the transfer) in connection with the transfer or the exercise of functions in relation to claims management services;

• (c) contain provision for the payment of compensation by the FOS to any person whose interests are adversely affected by the transfer scheme;

• (d) make provision that is the same as or similar to provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), if those Regulations do not apply to the transfer.

• (2) An obligation of the FOS to make a compensation payment or to meet a liability transferred under provision in a transfer scheme is to be treated for the purposes of section 234 of the Financial Services and Markets Act 2000 (industry funding) as a cost of its operation in relation to the compulsory jurisdiction.

Supplementary

24

A transfer scheme may—

• (a) contain supplementary, incidental and consequential provision;

• (b) make transitory or transitional provision or savings;

• (c) make different provision for different purposes;

• (d) make provision subject to exceptions.

Modification of a transfer scheme

25

Subject to paragraphs 26 to 28, the OLC may modify a transfer scheme.

26

A modification relating to a transfer that has taken effect may be made only with the agreement of the person (or persons) affected by the modification.

27

A modification is not to be capable of coming into effect unless it is approved by the Treasury and the Lord Chancellor.

28

The OLC may not submit a scheme to the Treasury or the Lord Chancellor for approval under paragraph 27 without the consent of the FOS and the FCA.

29

A modification takes effect from such date as the OLC may specify, and that date may be the date when the original scheme came into effect.

SCHEDULE 5

FCA information gathering powers

1

Part 11 of the Financial Services and Markets Act 2000 (information gathering and investigations) has effect as if—

• (a) to the extent that they relate to a notice or authorisation of the FCA, the references in section 165(1), (3) and (7)(a) to an authorised person include a reference to a person falling within paragraph 2,

• (b) the reference in section 165(4)(a) to the exercise by either regulator of functions conferred on it under the Financial Services and Markets Act 2000 includes a reference to the steps taken, or to be taken, by the FCA in preparation for the conferral of functions on it by virtue of the making of an order under section 22(1B) of that Act (“a regulated claims management activity order”), and

• (c) the reference in section 166(2)(a) to an authorised person includes a reference to a person falling within paragraph 3.

2

A person falls within this paragraph if the person—

• (a) is or at any time was authorised under section 5(1)(a) of the Compensation Act 2006 (provision of regulated claims management services), or

• (b) is, or at any time was, providing services in Scotland which the person would be, or would have been, prohibited from providing in England and Wales by section 4(1) of the Compensation Act 2006 unless authorised under section 5(1)(a) of that Act.

3

A person falls within this paragraph if the person—

• (a) is authorised under section 5(1)(a) of the Compensation Act 2006 (provision of regulated claims management services), or

• (b) is providing services in Scotland which the person would be prohibited from providing in England and Wales by section 4(1) of the Compensation Act 2006 unless authorised under section 5(1)(a) of that Act.

FCA preparatory steps

4

The FCA may, before the making of a regulated claims management activity order, take such steps as the FCA considers necessary or expedient in preparation for the conferral of functions on it as a result of the making of the order.

Consultation requirements

5

Paragraphs 6 and 7 apply in connection with the making or issuing of any rules or other instrument or document relating to an activity—

• (a) of a kind specified in a regulated claims management activity order, or

• (b) of a kind specified in an order under section 21(10B) of the Financial Services and Markets Act 2000.

6

Any requirement imposed on the FCA—

• (a) to publish a draft of the rules or other instrument or document and invite representations about it, or

• (b) to consult particular persons,

may be satisfied by things done by the FCA before the coming into effect of the order or the passing of this Act.

7

Section 138I of the Financial Services and Markets Act 2000 (consultation by the FCA) does not apply in relation to rules which make provision similar to any provision in or made under Part 2 of the Compensation Act 2006.

Designation of Regulator’s rules

8

After the making of a regulated claims management activity order, rules which—

• (a) were made by the Regulator by virtue of provision in or under Part 2 of the Compensation Act 2006, and

• (b) are designated by the FCA,

are to be treated as having been made by the FCA by virtue of comparable provision in the Financial Services and Markets Act 2000.

9

The rules may be modified by the FCA.

Provision of information by Regulator and OLC

10

The Regulator may disclose to the FCA or the FOS any information which the Regulator considers that it is necessary or expedient to disclose to the FCA or, as the case may be, the FOS so that the FCA or the FOS can take steps in preparation for the conferral of functions on it as a result of the making of a regulated claims management activity order.

11

Section 244 of the Enterprise Act 2002 (considerations relevant to disclosure of information) does not apply in relation to a disclosure under paragraph 10.

12

The OLC may disclose to the FOS or the FCA any information which the OLC considers that it is necessary or expedient to disclose to the FOS or, as the case may be, the FCA so that the FOS or the FCA can take steps in preparation for the conferral of functions on it as a result of the making of a regulated claims management activity order.

Complaints handling

13

Where a regulated claims management activity order is made which requires the OLC to continue to deal with complaints made to it on or before a date or event identified in the order—

• (a) the FCA is to reimburse the OLC for the cost it incurs in doing so, and

• (b) this reimbursement obligation is to be treated for the purposes of paragraph 23 of Schedule 1ZA to the Financial Services and Markets Act 2000 (fees) as a qualifying function conferred on the FCA under that Act.

Interpretation

14

In this Schedule—

• “the FCA” means the Financial Conduct Authority;

• “the FOS” means the body corporate which administers the ombudsman scheme provided for in Part 16 of the Financial Services and Markets Act 2000 (see section 225 of that Act);

• “the OLC” means the Office for Legal Complaints established by section 114 of the Legal Services Act 2007;

• “the Regulator” means the person designated under section 5(1) of the Compensation Act 2006 or, if no person is so designated, the Secretary of State;

• “regulated claims management activity order” has the meaning given in paragraph 1(b).

Levy under FSMA 2000 for expenses of single financial guidance body

Levy under FSMA 2000 for expenses of single financial guidance body

Occupational pension schemes: requirements to refer members to guidance etc

FCA general rules: information about the availability of guidance

Transfer to FCA of regulation of claims management services

Transfer to FCA of regulation of claims management services

Power of FCA to make rules restricting charges for claims management services

Extent

Extent

Status

Members: general

Non-executive members: tenure

Non-executive members: conflicts of interest

Non-executive members: remuneration etc

Executive members: appointment

Executive members: terms and conditions

Other staff: appointment, terms and conditions

Committees

Delegation

Procedure etc

Validity of acts

Authentication of seal

Reports and accounts

Power to make transfer schemes

Contents of a scheme

Modifications to a scheme

Supplementary

Public Records Act 1958 (c. 51)

Parliamentary Commissioner Act 1967 (c. 13)

House of Commons Disqualification Act 1975 (c. 24)

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

Financial Services and Markets Act 2000 (c. 8)

Freedom of Information Act 2000 (c. 36)

Equality Act 2010 (c. 15)

Financial Services Act 2010 (c. 28)

Financial Services Act 2012 (c. 21)

Pension Schemes Act 2015 (c. 8)

Bank of England and Financial Services Act 2016 (c. 14)

Power of Secretary of State to make transfer schemes

Transfer of property, rights and liabilities

Contents of a transfer scheme

Supplementary

Modification of a transfer scheme

Power of OLC to make transfer schemes

Power of Lord Chancellor to make transfer schemes

Provision of information and assistance by OLC

Transfer of property, rights and liabilities

Contents of a transfer scheme

Supplementary

Modification of a transfer scheme

FCA information gathering powers

FCA preparatory steps

Consultation requirements

Designation of Regulator's rules

Provision of information by Regulator and OLC

Complaints handling

Interpretation

Editorial notes