Objectives of FSA etc

I12Enhancing public understanding of financial matters etc

1

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

I22

In section 2 (the FSA's general duties)—

a

in subsection (2) (the FSA's regulatory objectives), omit paragraph (b)(which provides that public awareness is one of those objectives), and

b

in subsection (3) (matters to which FSA must have regard in discharging its general functions), after paragraph (g) insert—

h

the desirability of enhancing the understanding and knowledge of members of the public of financial matters (including the UK financial system).

I23

Omit section 4(public awareness).

I24

In section 5(2) (the protection of consumers), after paragraph (b) insert—

ba

any information which the consumer financial education body has provided to the Authority in the exercise of the consumer financial education function;

5

After section 6 insert—

Enhancing public understanding of financial matters etc

6AEnhancing public understanding of financial matters etc

1

The Authority must establish a body corporate (“the consumer financial education body”) whose function (“the consumer financial education function”) is to enhance—

a

the understanding and knowledge of members of the public of financial matters (including the UK financial system); and

b

the ability of members of the public to manage their own financial affairs.

2

The consumer financial education function includes, in particular—

a

promoting awareness of the benefits of financial planning;

b

promoting awareness of the financial advantages and disadvantages in relation to the supply of particular kinds of goods or services;

c

promoting awareness of the benefits and risks associated with different kinds of financial dealing (which includes informing the Authority and other bodies of those benefits and risks);

d

the publication of educational materials or the carrying out of other educational activities; and

e

the provision of information and advice to members of the public.

3

Schedule 1A makes further provision about the consumer financial education body.

I36

After Schedule 1 insert the Schedule 1A set out in Schedule 1 to this Act.

7

If members of staff of the FSA are transferred to the consumer financial education body, the transfer is to be regarded for the purposes of TUPE as a relevant transfer, whether or not it would otherwise be so regarded.

8

In subsection (7)—

  • “the consumer financial education body” has the same meaning as in section 6A of the Financial Services and Markets Act 2000,

  • “the FSA” means the Financial Services Authority, and

  • “TUPE” means the Transfer of Undertakings (Protection of Employment) Regulations 2006.