The Financial Services Bill [HL] (First Day) - Second Reading of the entire bill

Asked the Minister to reconsider introducing a climate-and-nature-specific statutory objective alongside competitiveness and growth.

Pressed for financial institutions not to invest in businesses supporting deforestation internationally. Will consider placing such a duty on the sector.

Expressed concerns about Henry VIII powers and lack of appropriate accountability to the House.

Concerned that significant power is being given directly to the Treasury, bypassing Parliament entirely during transition periods.

Reassured Members that each piece of secondary legislation presented can be taken or left by Parliament and will have ample opportunity for questioning.

Asked if the Treasury Committee could instil a sense of urgency in regulators regarding competitiveness, emphasising the importance of driving them to implement Parliament's will.

Questioned whether the Treasury Committee's small size is adequate for scrutinizing important financial services issues on behalf of all MPs.

Pressed for faster action regarding regulation for buy now, pay later products ahead of the Christmas season.

Called for specific focus on rural and deprived areas in determining cash requirements during reviews and mechanisms implementation.

Clarified the definition of 'access to cash', questioning if it implies free access or includes paid-for ATMs.

While Emma Hardy did not provide extensive details or statistics in the brief snippet, her position can be inferred from context. She is likely to raise concerns about funding for social care services and advocate for increased government support.

This entry does not provide a specific speaker's name or contribution, hence no position can be assigned based on the given information.

As pointed out by Rosie Winterton, she emphasises the high demand for speaking time in this debate. Her statement does not reflect a stance on any amendment or clause but highlights procedural concerns.

The Labour party recognises that the City is now in a place very different from where it was in 2016. The consensus view across the sector now is that the ship has sailed on regulatory equivalence with Europe, but regulatory divergence with the EU has the potential to produce many opportunities for the sector and the wider economy. However, Europe will always remain an important market for our financial services sector. In 2021, exports of financial services to the EU were worth £20.1 billion—that is 33% of all UK financial services exports.

There is a real opportunity to be a competitive green financial centre, as other countries are moving faster than we are. A secondary objective in respect of climate and nature will be essential to ensure that we regulate in a way that allows us to make the most of this potential.

One does not exclude the other; it is possible to be both competitive and have a green agenda. The UK needs to regulate in a way that allows us to make the most of our potential as a green financial centre.

Concerns about the delivery of hubs are valid. They do not deliver for those who live in cities, as people require the bank most days if they are dependent on cash, and they are just expected to get the bus.

Concerns about access to banking services in rural areas. A number of banks have closed in their constituency—I believe there have been 10 or 11. Each of those banks—Danske Bank, Ulster Bank and all the others—has made exorbitant profits. Their profits are so high that they could well keep their branches open to ensure that people who live in a rural area can have access.

Mr. Sunak supports the Bill, emphasising its role in seizing opportunities post-Brexit to scrap retained EU law and move towards an agile regulatory system tailored for the UK. He highlights three key points: 1) The revocation of all retained EU financial services laws; 2) Supporting economic competitiveness through new statutory objectives for regulators; 3) Encouraging innovation with provisions like distributed ledger technology pilot schemes and stablecoin regulation. Mr. Sunak also calls for further reforms, such as modifying the prospectus directive and repealing PRIIPS to tailor regulations for UK markets.

Mr. Grant criticises clause 1 for its lack of clarity in revoking over 200 pieces of legislation and not providing a clear roadmap for replacements. He expresses concerns about the Government's power to amend or revoke laws passed by devolved authorities without proper scrutiny, which he sees as an unacceptable power grab. Mr. Grant also highlights issues with financial fraud protection, inadequate anti-fraud measures, and the need for better regulation of high-risk companies.

Mel Stride supports the Bill, highlighting the opportunities and new freedoms provided by Brexit. He emphasises the importance of parliamentary scrutiny through the Treasury Committee and proposes a Sub-Committee to address regulatory changes more flexibly. Stride also mentions concerns about the Government's powers over regulators, suggesting that there needs to be careful consideration to ensure these powers do not overly impinge on the independence of the regulators. He supports the new secondary objectives for the FCA and PRA but underscores the importance of maintaining the Bank of England’s independence.

Ms Seema Malhotra argues for the need to strengthen legislative protections for access to cash, noting that around 6,000 bank branches have closed since 2015. She highlights the plight of mortgage prisoners who are paying excessive interest rates due to mortgages being sold off by high street banks to vulture funds post-financial crisis. The Bill's provisions fall short in addressing these issues and do not provide adequate relief for mortgage prisoners.

Mr Kevin Hollinrake interjects to highlight the issue of broken promises made at the time when loan books were sold. He notes that UK Asset Resolution committed to ensuring mortgage prisoners could access market and fixed-rate deals, but these commitments have not been honoured.

Questions the effectiveness of FCA intervention in combating unaffordable lending, suggesting further reform is needed. Highlights the role of financial ombudsman service in holding companies accountable.

Expresses concern over the closure of free-to-use ATMs in Edmonton, stressing the importance of cash for budgeting and small businesses. Calls for clear commitments to protect free-to-use machines over pay-to-use ones, sustainable funding for free ATMs, and a pause on removing free-to-use ATMs.

Glen supports the Financial Services Bill, emphasising its impact on the financial services industry. He appreciates the significant amount of work and consultation involved in implementing the future regulatory framework, acknowledging that the EU legacy has been instrumental but also highlighting opportunities for UK innovation.

Cowan raises concerns about the declining access to cash and its impact on vulnerable populations. He urges the Government to provide clarity in their policy statement, ensuring free access to cash for those who rely on it, especially the elderly and impoverished.

Mr. Hammond supports the clause and highlights its importance for the financial industry, emphasising the need for regulatory bodies to be accountable both to this House and the Government. He also calls for mutual recognition agreements with other jurisdictions to enhance global competitiveness.

Mr. McDonnell expresses concerns about the clause, arguing that it reintroduces a focus on competitiveness which could override other issues of concern. He criticises the effectiveness of existing regulatory bodies such as the FCA and highlights potential future threats like shadow banking and speculation in energy and food markets.

Supports the Bill's recommendations, emphasising access to cash and wider banking services. Cites an example of proposed bank closures in his constituency and highlights LINK’s designation of Barton-upon-Humber as a financial hub. Points out that over 5 million people rely on daily cash use and many do not have internet access, stressing the importance of face-to-face meetings with banks for important decisions like mortgages. Urges the Minister to include 'free' access to cash in legislation.

Warns against the dangers of buy now, pay later lending in a cost-of-living crisis. Emphasises that constituents are turning to high-cost credit options and highlights the need for immediate regulation and protection through the ombudsman.

[INTERVENTION] Stresses complexity of delivering legislation, but acknowledges market practices are changing due to stated intent. Does not agree with the need for immediate regulation as proposed.

Ms Leadsom praised her colleague for his work on the Bill and emphasised its importance. She highlighted the potential of the UK to lead in financial regulation post-Brexit, particularly in green finance. She questioned the Minister about mutual recognition agreements, payment system improvements, protection against digital currency fraud, access to cheques and free cash through ATMs, support for credit unions and financial education.

Mr Smith welcomed the Bill but raised concerns about the effectiveness of the FCA. He cited issues with the FCA's oversight of pension transfers, particularly in relation to the British Steel Pension Scheme scandal where 47% of transfer recommendations were found unsuitable. He proposed amendments to mandate a sharper focus on consumer protection and suggested reviewing the FCA’s enforcement powers.

Supports clauses 47 and 48 as they aim to put on a statutory footing some of the best conclusions from the access to cash review. Cites local survey results in her constituency where over 60% used in-person banking services within the last month, and more than 35% never used online or virtual banking. She advocates for shared banking hubs that can be regulated by FCA to increase footfall on high streets and provide social benefits for isolated elderly people.

Welcomes the Bill but expresses disappointment that it does not go further in anticipating issues within the financial services sector. Concerned about the focus on competitiveness over consumer protection and net zero objectives. Supports measures for tackling push payments and fraud, advocating for stronger powers to tackle these issues. Emphasises free access to cash and supports community banking hubs independent of existing banks.

Emphasised that access to cash is about more than just ATMs, but also includes face-to-face banking services. Raised concerns over the hidden economics of the cash system and the need for local cash recycling to avoid nationwide banknote distribution. Noted the importance of LINK's efforts in ensuring access to cash services where bank branches are closing. Asked for clarification on the Government’s proposed measures regarding geographical accessibility and cost of using ATMs, particularly in urban areas like Mitcham and Morden. Proposed a community right to review decisions about banking hubs to ensure transparency and fairness.

[INTERVENTION] Agreed with Paul Maynard's point on the proximity of cash machines and arbitrary limits, citing Glasgow as an example where such restrictions would severely limit access to ATMs.

The speaker argues that the FCA needs to address financial inclusion, highlighting issues such as recruitment challenges at the FCA and its failure to recognise trade unions. She proposes an amendment to include a statutory duty for the FCA to report annually on measures taken to advance financial inclusion, addressing concerns about poverty premiums impacting constituents' access to essential services.

Supports the Bill's call-in power, arguing it is essential for elected Government oversight. Suggests reducing bank levy and re-evaluating ringfencing to boost competitiveness without compromising safety standards.

[INTERVENTION] Asked Bim Afolami for an example of when the Government might use the call-in power, seeking clarity on its practical application.

[INTERVENTION] Inquired about the single largest threat to financial services institutions moving away from the UK and potential issues with oversight in other jurisdictions.

The Bill falls short in promoting green finance and achieving net zero emissions. It prioritises competitiveness over environmental sustainability, which is reckless given the urgent need to address climate change and energy costs. Liberal Democrats propose stricter legal obligations for regulators to manage climate risks.

The Bill aims to improve access to cash and banking services, which is crucial in constituencies facing bank closures. James Davies highlights the importance of preserving traditional banking methods for those who struggle with digital transactions due to income pressures or lack of IT literacy. He supports the statutory framework proposed by the Bill and calls for transparency in assessments and appeal processes.

Supports clauses 47 and 48, which safeguard access to cash but calls for extending their remit to include in-person services due to their importance to elderly individuals, those who are not IT literate, and small businesses. Highlights challenges faced by communities due to the loss of bank branches and ATMs.

Welcomes the Bill's decisions on financial services divergence, consultations with industry for Solvency II and MiFID II changes. Focuses on the market for advice and guidance, advocating for more personalised guidance through innovation and technology to better inform consumers and tackle scams.

Expresses anger over the loss of bank branches in Mitcham, highlighting the impact on elderly, disabled, and low-income residents who rely on face-to-face banking services. She cites evidence from last year's Barclays branch closure, where 50% of residents relied solely on physical banks due to lack of internet access or trust in digital systems. Additionally, she discusses challenges faced by communities trying to secure free ATMs and the importance of supporting those struggling with the digital divide.

Supports the Bill for its role in fostering innovation within financial services while ensuring appropriate regulation. He highlights the need to ensure that non-regulated activities by regulated institutions are properly scrutinised to protect consumers, mentioning cases involving will writing organisations and trust services. Emphasises the importance of access to cash for small businesses, as they often require coin-based transactions which cannot be facilitated through ATMs.

Supports clauses 8 to 23, which grant additional powers to regulators for greater regulation of financial promotions. Emphasises the importance of regulating cryptocurrency and protecting individuals from wrongdoing by regulatory bodies like the FCA. Raises concerns about the lack of sufficient regulations to prevent consumer loss from schemes such as the 'Billion-Pound Savings Scandal'. Stresses the importance of access to cash, particularly in small businesses with tight profit margins, citing statistics on Post Office personal withdrawals. Advocates for greater use of credit unions and raises concern over the winter crisis's impact on malnourishment and freezing homes.

Welcomes the Bill as a significant reform for financial regulation, praising its potential to unleash the industry's growth. Supports the move towards tighter regulations on promotions and improved coordination between the FCA and PRA. Advocates for democratizing capital markets through extending auto-enrolment to 18-22 year olds, removing regulatory obstacles for investment advice, and reforming Solvency II to allow pensioners to invest in illiquids such as infrastructure.

We support the bill but raise concerns about recent government infighting undermining confidence in the City. The bill should not compromise financial stability or consumer protections. We also discuss issues like free access to cash, FCA accountability, buy now pay later lenders, bank branch closures, cryptocurrencies and their risks, and financial exclusion.

Welcomes broad support for the Bill, emphasises its importance in reforming financial services regulation post-Brexit. Acknowledges concerns about access to cash but asserts government commitment to protecting consumers and supporting inclusion through innovative solutions like shared bank hubs. Highlights that the FCA has powers to prevent branch closures if they would result in significant adverse impacts on cash access, stressing that these situations will be exceptional and temporary while alternative arrangements are put in place.