Financial Guidance and Claims Act 2018

Legal background

Single Financial Guidance Body

23. Government-sponsored pensions guidance, money guidance and debt advice is currently provided by the Money Advice Service (a not-for-profit company originally established by the Financial Conduct Authority under section 6A of the Financial Services and Markets Act 2000), the Pensions Advisory Service (which is incorporated as a not-for-profit company limited by guarantee) and the Department for Work and Pensions under the ‘Pension Wise’ banner (under Part 20A of the Financial Services and Markets Act 2000).

Claims Management Services

24. Previously the functions of the claims management regulator were carried out by the Secretary of State for Justice (through officials at the Claims Management Regulation Unit), under Part 2 of the Compensation Act 20061 (and secondary legislation made under it). These provisions will be repealed, as part of the transfer of functions, in this Act.
25. The Financial Services and Markets Act 2000 (the 2000 Act) sets out the legislative basis and remit of the Financial Conduct Authority. It provides the legislative framework for the Financial Conduct Authority to authorise entities undertaking "regulated activities" and "controlled activities". The sections in this Act amend the 2000 Act, and provide for certain requirements and powers on the Financial Conduct Authority and the Secretary of State, to enable the transfer of regulation from the Ministry of Justice to the Financial Conduct Authority. The sections will be supplemented by secondary legislation made under powers in the 2000 Act.
26. Complaints by consumers about the service provided by regulated claims management companies will also be transferred from the Legal Ombudsman to the Financial Ombudsman Service. The sections will also permit the Secretary of State to put in place a transfer scheme for staff, assets and liabilities of the Claims Management Regulation Unit to the Financial Conduct Authority.