Financial Services and Markets Act 2000 (c. 8)

SCHEDULES

[F2 Section 3S]

[F1 SCHEDULE 1A U.K. Further provision about the consumer financial education body

Textual Amendments

F1 Sch. 1A inserted (8.4.2010 for certain purposes and 1.4.2011 otherwise) by Financial Services Act 2010 (c. 28), ss. 2(6), 26(1)(b)(k), Sch. 1 para. 1 (with Sch. 1 para. 2); S.I. 2010/2480, art. 3

F2 Words in Sch. 1A substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 16 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Part 1 U.K. General

Ensuring exercise of consumer financial education function etc U.K.

1 (1) The [F3 FCA] must take such steps as are necessary to ensure that the consumer financial education body is, at all times, capable of exercising the consumer financial education function. U.K.

(2) In complying with the duty under sub-paragraph (1) the [F3 FCA] may, in particular, provide services to that body which the [F3 FCA] considers would facilitate the exercise of that function.

Textual Amendments

F3 Word in Sch. 1A para. 1 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 2 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Constitution U.K.

2 (1) The constitution of the consumer financial education body must provide for it to have— U.K.

(a) a chair;

(b) a chief executive; and

(c) a board (which must include the chair and chief executive) whose members are the body's directors.

(2) The members of the board must be persons appointed, and liable to removal from office, by the [F4 FCA] (acting, in the case of the chair or chief executive, with the approval of the Treasury).

(3) But the terms of appointment of members of the board (and in particular those governing removal from office) must be such as to secure their independence from the [F4 FCA] in the exercise of the consumer financial education function.

(4) The [F4 FCA] may appoint a person to be a member of the board only if it is satisfied that the person has knowledge or experience which is likely to be relevant to the exercise by the body of the consumer financial education function.

Textual Amendments

F4 Word in Sch. 1A para. 2 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 3 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Status U.K.

3 (1) The consumer financial education body is not to be regarded as exercising functions on behalf of the Crown. U.K.

(2) The body's F5 ... officers and staff are not to be regarded as Crown servants.

Textual Amendments

F5 Words in Sch. 1A para. 3(2) omitted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 4 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Discharge of function by others U.K.

4 (1) The consumer financial education body may discharge the consumer financial education function by— U.K.

(a) supporting the doing by other persons of anything that it considers would enhance the understanding, knowledge or ability mentioned in [F6 section 3S(3)]; or

(b) arranging for other persons to do anything that it considers would enhance that understanding, knowledge or ability.

(2) The reference in sub-paragraph (1)(a) to support includes financial support.

(3) The reference in sub-paragraph (1)(b) to arrangements includes arrangements under which payments are made to the other persons.

(4) Nothing in this paragraph is to limit other ways in which the consumer financial education body may discharge the consumer financial education function.

Textual Amendments

F6 Words in Sch. 1A para. 4(1)(a) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 5 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

5 (1) This paragraph applies if the consumer financial education body arranges for any person (including one established by or under an enactment) to do anything that it considers would enhance the understanding, knowledge or ability mentioned in [F7 section 3S(3)]. U.K.

(2) The person may do that thing despite any limitation on its capacity (whether under a rule of law or otherwise) which, but for this paragraph, would have applied.

Textual Amendments

F7 Words in Sch. 1A para. 5(1) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 6 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

[F8 Discharge of functions: considerations U.K.

Textual Amendments

F8 Sch. 1A paras. 6-6B and cross-headings substituted for Sch. 1A para. 6 and cross-heading (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 7 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

6 U.K. In discharging the consumer financial education function the consumer financial education body must have regard to the duty of the FCA to advance its operational objectives.

Relationship with the FCA U.K.

6A (1) The consumer financial education body and the FCA must each take such steps as it considers appropriate to co-operate with the other in the exercise of their functions under this Act. U.K.

(2) The consumer financial education body and the FCA must prepare and maintain a memorandum describing how they intend to comply with sub-paragraph (1).

(3) The consumer financial education body must ensure that the memorandum as currently in force is published in the way appearing to it to be best calculated to bring it to the attention of the public.

6B U.K. If the consumer financial education body considers that it has information that, in its opinion, would or might be of assistance to the FCA in advancing one or more of the FCA's operational objectives, it must disclose that information to the FCA.]

Budget U.K.

7 (1) The consumer financial education body must adopt an annual budget which has been approved by the [F9 FCA]. U.K.

(2) The budget must be adopted—

(a) in the case of the body's first financial year, as soon as reasonably practicable after the body is established; and

(b) in the case of each subsequent financial year, before the start of the financial year.

(3) The consumer financial education body may, with the approval of the [F9 FCA], vary the budget for a financial year at any time after its adoption.

(4) Before adopting or varying a budget, the consumer financial education body must consult—

(a) the Treasury;

(b) the Secretary of State;

(c) F10 ... and

(d) such other persons (if any) as the body considers appropriate.

(5) The consumer financial education body must publish each budget, and each variation of a budget, in the way it considers appropriate.

Textual Amendments

F9 Word in Sch. 1A para. 7 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 8 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

F10 Sch. 1A para. 7(4)(c) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(16)(a)

Annual plan U.K.

8 (1) The consumer financial education body must in respect of each of its financial years prepare an annual plan which has been approved by the [F11 FCA]. U.K.

(2) The plan must be prepared—

(a) in the case of the body's first financial year, as soon as reasonably practicable after the body is established; and

(b) in the case of each subsequent financial year, before the start of the financial year.

(3) The consumer financial education body may, with the approval of the [F11 FCA], vary the plan in respect of a financial year at any time after its preparation.

(4) An annual plan in respect of a financial year must set out—

(a) the objectives of the consumer financial education body for the year;

(b) how the extent to which each of those objectives is met is to be determined;

(c) the relative priorities of each of those objectives; and

(d) how its resources are to be allocated among the activities to be carried on in connection with the discharge of the consumer financial education function.

(5) In sub-paragraph (4) references to objectives for a financial year include objectives for a longer period that includes that year.

(6) Before preparing or varying an annual plan, the consumer financial education body must consult—

(a) the Treasury;

(b) the Secretary of State;

F12 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the Practitioner Panel;

[F13 (da) the Smaller Business Practitioner Panel;]

(e) the Consumer Panel; and

(f) such other persons (if any) as the body considers appropriate.

(7) The consumer financial education body must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.

Textual Amendments

F11 Word in Sch. 1A para. 8 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 9(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

F12 Sch. 1A para. 8(6)(c) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(16)(b)

F13 Sch. 1A para. 8(6)(da) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 9(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Annual reports U.K.

9 (1) At least once a year, the consumer financial education body must make a report to the [F14 FCA] in relation to the discharge of the consumer financial education function. U.K.

(2) The report must—

(a) set out the extent to which the body has met its objectives and priorities for the period covered by the report;

(b) include a copy of its latest accounts; and

(c) comply with any requirements specified in rules made by the [F14 FCA].

(3) The consumer financial education body must publish each report in the way it considers appropriate.

(4) Nothing in this paragraph requires the consumer financial education body to make a report at any time in the period of 12 months beginning with its establishment.

[F15 (5) The Treasury may—

(a) require the consumer financial education body to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or

(b) direct that any provision of that Act about accounts and their audit is to apply to the consumer financial education body with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.

(6) Compliance with any requirement under sub-paragraph (5)(a) or (b) is enforceable by injunction or, in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988.

(7) Proceedings under sub-paragraph (6) may be brought only by the Treasury.]

Textual Amendments

F14 Word in Sch. 1A para. 9 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 10(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

F15 Sch. 1A para. 9(5)-(7) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 10(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

[F16 Audit of accounts U.K.

Textual Amendments

F16 Sch. 1A para. 9A and crossheading inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 11 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

9A (1) The consumer financial education body must send a copy of its annual accounts to the Comptroller and Auditor General and the Treasury as soon as is reasonably practicable. U.K.

(2) The Comptroller and Auditor General must—

(a) examine, certify and report on accounts received under this paragraph, and

(b) send a copy of the certified accounts and the report to the Treasury.

(3) The Treasury must lay the copy of the certified accounts and the report before Parliament.

(4) The consumer financial education body must send a copy of the certified accounts and the report to the FCA.

(5) Except as provided for by paragraph 9(5), the consumer financial education body is exempt from the requirements of Part 16 of the Companies Act 2006 (audit) and its balance sheet must contain a statement to that effect.

(6) In this paragraph “annual accounts” has the meaning given by section 471 of the Companies Act 2006.]

F17 ... U.K.

Textual Amendments

F17 Sch. 1A para. 10(1) and crossheading omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(16)(c)

10 F17 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

(2) Nothing in Part 4 or 10 of [F18 the Consumer Credit Act 1974] (seeking business or ancillary credit business) is to apply in relation to anything done by—

(a) the consumer financial education body in discharging the consumer financial education function; or

(b) a person acting on its behalf in accordance with arrangements made under paragraph 4(1)(b).

Textual Amendments

F18 Words in Sch. 1A para. 10(2) substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(16)(d)

Part 2 U.K. Funding

Meaning of “the relevant costs” U.K.

11 (1) In this Part of this Schedule “the relevant costs” means— U.K.

(a) the expenses incurred by the [F19 FCA] in establishing the consumer financial education body; and

(b) the expenses incurred, or expected to be incurred, by the consumer financial education body in connection with the discharge of the consumer financial education function.

(2) For the purposes of sub-paragraph (1)(a) it does not matter when the expenses were incurred.

Textual Amendments

F19 Word in Sch. 1A para. 11 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 12 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Funding of the relevant costs by authorised persons [F20 , payment service providers or electronic money issuers] U.K.

Textual Amendments

F20 Words in cross-heading preceding Sch. 1A para. 12 substituted (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xv)(b), 79, Sch. 4 para. 2(6)(a) (with art. 3)

12 (1) For the purpose of meeting a proportion of the relevant costs the [F21 FCA] may makes rules requiring— U.K.

(a) authorised persons [F22 , electronic money issuers] or payment service providers, or

(b) any specified class of authorised person [F23 , electronic money issuer] or payment service provider,

to pay to the [F21 FCA] specified amounts or amounts calculated in a specified way.

(2) Before making the rules the [F21 FCA] must have regard to other anticipated sources of funding of the relevant costs.

(3) The amounts to be paid under the rules may include a component to cover the expenses of the [F21 FCA] in collecting the payments (“collection costs”).

(4) The [F21 FCA] must pay to the consumer financial education body the amounts that it receives under the rules apart from amounts in respect of its collection costs (which it may keep).

[F24 (4A) “Electronic money issuer” means a person who is an electronic money issuer for the purposes of the Electronic Money Regulations 2011 as a result of falling within any of paragraphs (a) to (e) and (h) to (j) of the definition in regulation 2(1).]

(5) “Payment service provider” means a person who is a payment service provider for the purposes of the Payment Services Regulations 2009 as a result of falling within any of paragraphs (a) to (f) of the definition in regulation 2(1).

(6) “Specified” means specified in the rules.

Textual Amendments

F21 Word in Sch. 1A para. 12 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 13 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

F22 Words in Sch. 1A para. 12(1)(a) inserted (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xv)(b), 79, Sch. 4 para. 2(6)(b) (with art. 3)

F23 Words in Sch. 1A para. 12(1)(b) inserted (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xv)(b), 79, Sch. 4 para. 2(6)(c) (with art. 3)

F24 Sch. 1A para. 12(4A) inserted (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xv)(b), 79, Sch. 4 para. 2(6)(d) (with art. 3)

Funding of the relevant costs by consumer credit licensees etc U.K.

F25 13 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F25 Sch. 1A para. 13 omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(16)(e)

Funding by grants or loans etc made by Treasury or Secretary of State U.K.

14 (1) The Treasury or the Secretary of State may— U.K.

(a) make grants or loans, or

(b) provide any other form of financial assistance,

to the consumer financial education body for the purpose of meeting any expenses incurred by it in connection with the discharge of the consumer financial education function.

(2) Any grant or loan or other form of financial assistance under this paragraph may be made or provided subject to such terms as the Treasury or the Secretary of State consider appropriate.

(3) Any expenses incurred by the Treasury or the Secretary of State under this paragraph are to be met out of money provided by Parliament.

Part 3 U.K. Reviews

Reviews of economy etc of the consumer financial education body U.K.

15 (1) The [F26 FCA] may appoint an independent person to conduct a review of the economy, efficiency and effectiveness with which the consumer financial education body has used its resources in discharging the consumer financial education function. U.K.

(2) The [F26 FCA] must consult the Treasury before acting under this paragraph.

(3) A review is not to be concerned with the merits of the body's general policy or principles in discharging the consumer financial education function.

(4) On completion of a review, the person conducting it must make a written report to the [F26 FCA]—

(a) setting out the result of the review; and

(b) making such recommendations (if any) as the person considers appropriate.

(5) The [F26 FCA] must publish a copy of the report in the way it considers appropriate.

(6) Any expenses reasonably incurred in the conduct of the review are to be met by the [F26 FCA].

(7) “Independent” means appearing to the [F26 FCA] to be independent of the consumer financial education body.

Textual Amendments

F26 Word in Sch. 1A para. 15 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 15 para. 15 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Right to obtain documents and information U.K.

16 (1) A person conducting a review under paragraph 15— U.K.

(a) has a right of access at any reasonable time to all such documents as the person may reasonably require for the purposes of the review; and

(b) may require any person holding or accountable for any such document to provide such information and explanation as are reasonably required for those purposes.

(2) This paragraph applies only to documents in the custody or under the control of the consumer financial education body.

(3) An obligation imposed on a person as a result of this paragraph is enforceable by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.]