Joint Committee on Statutory Instruments Eighth Report


APPENDIX 3

Memorandum from HM Treasury

FINANCIAL SERVICES AND MARKETS ACT 2000 (MUTUAL SOCIETIES)

ORDER 2001 (S.I. 2001/2617)

1. HM Treasury submit this memorandum in response to the request dated 23 October 2001 on the points set out below.

Article 8(2) permits the Authority or Treasury (as the case may be) to make rules, regulations and orders and give directions in advance for the purpose of bringing them into effect at commencement (that is, on the day on which section 19 of the Act comes into force). Explain what authorises this provision. Is reliance being placed on section 426(2)(a)? If, for instance, the Treasury make an Order before commencement, would this not constitute the actual exercise of the power to make the Order rather than a step which is necessary as a preliminary to the exercise of that power?

2. Article 8(2) applies where the Order amends primary legislation to substitute the Treasury or the Authority for an existing regulator in a provision conferring a rule or regulation making function: see for example paragraph 200 (e) of Schedule 3 to the Order. Although the amendment does not come into force—and the Treasury's powers do not therefore arise—until commencement, article 8(2) allows for the early exercise of the transferred power so that rules, regulations etc may come into force at the same time as the amendment.

3. This provision is authorised by the following powers:

  • Section 339(1)(a) and (d) in conjunction with section 428(3) because article 8(2) of the Order is an incidental, supplemental and transitional provision arising from the transfer of rule or regulation making functions from the existing mutual society regulators to the Authority or the Treasury; alternatively

  • Section 427(3)(a) or (d) in conjunction with section 428(3) because article 8(2) of the Order is an incidental, supplemental and transitional provision arising from the conferring of rule and regulation making functions on the Authority and the Treasury and from the modification of the legislation which is amended by the Order.

29 October 2001


 
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