Compensation (London Capital & Finance plc and Fraud Compensation Fund) Act 2021
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Compensation payments to customers of London Capital & Finance plc</heading><subsection eId="section-1-1"><num>(1)</num><content><p>There may be paid out of money provided by Parliament expenditure incurred by the Treasury for, or in connection with, the payment of compensation to customers of London Capital & Finance plc adversely affected by matters identified in the Gloster Report.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><content><p>Subsection <ref href="#section-1-3">(3)</ref> applies where, under Part 15A of the Financial Services and Markets Act 2000 (power to require FSCS manager to act in relation to other schemes), the Treasury require the FSCS manager (within the meaning of that Part) to exercise functions in relation to a scheme for the payment of compensation as mentioned in subsection <ref href="#section-1-1">(1)</ref>.</p></content></subsection><subsection eId="section-1-3"><num>(3)</num><content><p>Section 138I of that Act (consultation by the Financial Conduct Authority) does not apply in relation to rules made by the Financial Conduct Authority under section 224F(5) of that Act (rules about relevant schemes applying provisions of the FSCS) in connection with the exercise by the FSCS manager of functions in relation to that scheme.</p></content></subsection><subsection eId="section-1-4"><num>(4)</num><content><p>In this section the “Gloster Report” means the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, as revised on 10 December 2020.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-1"><num>(1)</num><content><p>There may be paid out of money provided by Parliament expenditure incurred by the Treasury for, or in connection with, the payment of compensation to customers of London Capital & Finance plc adversely affected by matters identified in the Gloster Report.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-2"><num>(2)</num><content><p>Subsection <ref href="#section-1-3">(3)</ref> applies where, under Part 15A of the Financial Services and Markets Act 2000 (power to require FSCS manager to act in relation to other schemes), the Treasury require the FSCS manager (within the meaning of that Part) to exercise functions in relation to a scheme for the payment of compensation as mentioned in subsection <ref href="#section-1-1">(1)</ref>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-3"><num>(3)</num><content><p>Section 138I of that Act (consultation by the Financial Conduct Authority) does not apply in relation to rules made by the Financial Conduct Authority under section 224F(5) of that Act (rules about relevant schemes applying provisions of the FSCS) in connection with the exercise by the FSCS manager of functions in relation to that scheme.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-4"><num>(4)</num><content><p>In this section the “Gloster Report” means the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, as revised on 10 December 2020.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-2"><num>2</num><heading>Loans to the Board of the Pension Protection Fund</heading><subsection eId="section-2-1"><num>(1)</num><content><p>The Pensions Act 2004 is amended as follows.</p></content></subsection><subsection eId="section-2-2"><num>(2)</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>115A</num><heading>Loans made by the Secretary of State</heading><subsection><num>(1)</num><content><p>The Secretary of State may lend money to the Board for the purposes of the exercise of the Board’s functions under Chapter 4 of this Part and any corresponding provision in force in Northern Ireland.</p></content></subsection><subsection><num>(2)</num><content><p>A loan under this section may be made on such terms (including as to repayment and interest) as the Secretary of State may determine.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-2-3"><num>(3)</num><intro><p>In section 115 (borrowing from deposit-takers), in subsection (2) (limits on borrowing)—</p></intro><level class="para1" eId="section-2-3-a"><num>(a)</num><content><p>after “borrow” insert “under this section”;</p></content></level><level class="para1" eId="section-2-3-b"><num>(b)</num><content><p>in paragraph (a), after “it” insert “under this section”.</p></content></level></subsection><subsection eId="section-2-4"><num>(4)</num><intro><p>In section 188 (Fraud Compensation Fund)—</p></intro><level class="para1" eId="section-2-4-a"><num>(a)</num><content><p><mod>in subsection (1) (contents of the Fund), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>money borrowed by the Board under section 115A for the purposes of this Chapter,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-2-4-b"><num>(b)</num><content><p>in subsection (3) (permitted payments from the Fund), in paragraph (e) (repayment of money borrowed under section 115), after “(1)(c)” insert “or (ca)”.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-1"><num>(1)</num><content><p>The Pensions Act 2004 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-2-2"><num>(2)</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>115A</num><heading>Loans made by the Secretary of State</heading><subsection><num>(1)</num><content><p>The Secretary of State may lend money to the Board for the purposes of the exercise of the Board’s functions under Chapter 4 of this Part and any corresponding provision in force in Northern Ireland.</p></content></subsection><subsection><num>(2)</num><content><p>A loan under this section may be made on such terms (including as to repayment and interest) as the Secretary of State may determine.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-3"><num>(3)</num><intro><p>In section 115 (borrowing from deposit-takers), in subsection (2) (limits on borrowing)—</p></intro><level class="para1" eId="section-2-3-a"><num>(a)</num><content><p>after “borrow” insert “under this section”;</p></content></level><level class="para1" eId="section-2-3-b"><num>(b)</num><content><p>in paragraph (a), after “it” insert “under this section”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-3-a"><num>(a)</num><content><p>after “borrow” insert “under this section”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-3-b"><num>(b)</num><content><p>in paragraph (a), after “it” insert “under this section”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-2-4"><num>(4)</num><intro><p>In section 188 (Fraud Compensation Fund)—</p></intro><level class="para1" eId="section-2-4-a"><num>(a)</num><content><p><mod>in subsection (1) (contents of the Fund), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>money borrowed by the Board under section 115A for the purposes of this Chapter,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-2-4-b"><num>(b)</num><content><p>in subsection (3) (permitted payments from the Fund), in paragraph (e) (repayment of money borrowed under section 115), after “(1)(c)” insert “or (ca)”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-2-4-a"><num>(a)</num><content><p><mod>in subsection (1) (contents of the Fund), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content><p>money borrowed by the Board under section 115A for the purposes of this Chapter,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-4-b"><num>(b)</num><content><p>in subsection (3) (permitted payments from the Fund), in paragraph (e) (repayment of money borrowed under section 115), after “(1)(c)” insert “or (ca)”.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Short title</heading><content><p>This Act may be cited as the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Act 2021.</p></content></section>