Part 2: Financial Services Section 33: Advice about transferring or otherwise dealing with annuity payments
Subsection (2) of this section inserts new section 137FBA (FCA general rules: advice about transferring or otherwise dealing with annuity payments) into FSMA. This new section places a requirement on the FCA to make rules to require certain authorised persons (to be specified in rules made by the FCA) to check that an individual with an annuity of a specified type or value, who is considering transferring or dealing with the income stream from that annuity on the secondary market, has taken appropriate financial advice. The section includes powers for the Treasury to make secondary legislation:
exempting some people from the requirement to take advice;
specifying which types of annuities are caught by the advice requirement (by reference to their type, value or otherwise, including by reference to a person's financial circumstances), and
specifying what is meant by appropriate advice.
	Subsection (3) amends section 138F(2) of FSMA (notification of rules) so that the requirement in section 138F(1) for either regulator to give written notice to the Treasury and the Bank when it makes, alters or revokes any rules does not apply to rules made by the FCA under the new section 137FBA.
	Subsection (4) amends section 138I (consultation by the FCA) so that the requirement for the FCA to carry out a cost benefit analysis before making rules does not apply to rules made under new section 137FBA. The amendments to section 138I also disapply the requirement on the FCA in section 138I(1)(a) to consult the PRA before making rules under new section 137FBA.
	Subsection (5) amends section 429(2B) of FSMA (parliamentary control of statutory instruments) so that any regulations made by the Treasury under section 137FBA(3), to exempt persons from the requirement to take advice must be approved by both Houses of Parliament before they are made.