Financial Services Act 2012

Financial Services Act 2012

2012 CHAPTER 21

Commentary

Part 2 - Amendments of Financial Services and Markets Act 2000

Miscellaneous amendments of FSMA 2000

Section 45 and Schedule 15: The consumer financial education body

487. Section 45 introduces Schedule 15 which amends Schedule 1A to FSMA (further provision about the consumer financial education body).

488. Paragraph 5 of Schedule 15 amends paragraph 4 of Schedule 1A by referring to new section 3S. New section 3S(4) lists a number of activities covered by the consumer financial education function.

489. Paragraph 7 inserts three new paragraphs (paragraphs 6, 6A and 6B) into Schedule 1A. New paragraph 6 requires the CFEB to have regard to the FCA’s duty to advance its operational objectives when discharging its function. New paragraph 6A provides for the CFEB and the FCA to cooperate with each other in the exercise of their functions under FSMA. The CFEB and the FCA must also prepare and maintain a memorandum describing how they will do this. The memorandum must be published by the CFEB. New paragraph 6B requires the CFEB to disclose information to the FCA in circumstances where it considers that the information might be of assistance to the FCA in advancing one or more of its operational objectives.

490. New section 1C(2)(g) (see section 6) places a duty on the FCA to have regard to any information which the CFEB has provided to the FCA pursuant to new paragraph 6A (in considering what degree of protection for consumers may be appropriate, for the purposes of securing the FCA’s consumer protection objective).

491. Paragraph 10 amends paragraph 9 of Schedule 1A. This amendment allows the Treasury to direct the CFEB to comply with provisions of the Companies Act 2006 dealing with accounts and audit which would otherwise not apply to it. The Treasury may modify the application of any provision of the Companies Act 2006 covering accounts and audit in their application to the CFEB.

492. Paragraph 11 inserts a new paragraph 9A into Schedule 1A. New paragraph 9A provides for the CFEB’s annual accounts to be audited by the Comptroller and Auditor General; the National Audit Office carries out audit functions of the Comptroller and Auditor General. The Treasury must lay before Parliament the certified accounts of the CFEB and the report of the Comptroller and Auditor General on them.