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Payment Systems Regulator Bill - Schedule 7
07 December 2022
Lead MP
Andrew Griffith
Debate Type
Bill Debate
Tags
Standards & Ethics
Other Contributors: 56
At a Glance
Andrew Griffith raised concerns about payment systems regulator bill - schedule 7 in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I propose the amendment to Schedule 7 of the Payment Systems Regulator Bill, which aims to enhance accountability by ensuring transparency in the operations of the regulator. This is critical as it will allow stakeholders to monitor the performance of the Payment Systems Regulator more effectively. Transparency measures proposed include publishing annual reports detailing activities and decisions made throughout the year, thereby fostering public confidence in regulatory oversight. Additionally, this amendment seeks to establish an independent review mechanism for major decisions made by the regulator, ensuring accountability is maintained without compromising operational autonomy.
Andrew Griffith
Con
Arundel and South Downs
The amendment to Schedule 7 aims to strengthen accountability mechanisms for the Payment Systems Regulator. By requiring annual reports and independent reviews, this proposal ensures that regulatory activities are transparent and subject to scrutiny.
Richard Fuller
Con
North Bedfordshire
Asked Minister about the specificity of metrics for monitoring financial stability and delivering regulatory objectives, seeking assurance on how specific these measures will be in practice.
Peter Grant
Con
Constituency Unavailable
Suggested that restricting removal of liability to cases where the regulator has clearly and negligently failed to act could prevent precautionary regulation, using the example of Blackmore Bond fraud case.
Mitcham and Morden
Expressed delight that a free cash machine is to be provided in an area lacking adequate public transport, expressing concern about the reduction of free cash machines and requesting written assurance.
Andrea Leadsom
Con
Constituency Unavailable
Asked Minister to clarify government’s position on free access to cash, referencing a previous conversation about the importance of such access.
Mitcham and Morden
Expressed concern over the reduction in free-to-use ATMs by 24% since 2018, questioning whether the numbers will continue to fall. Argued for regulation to ensure that bank hubs promised as a solution open and operate effectively.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Asked if the Government would intervene proactively to ensure free access to cash in cases where it becomes clear that people do not have such access.
Kit Malthouse
Con
North West Hampshire
Noted the significant decline in cash payments and argued for the benefits of reducing cash transactions. However, also supported free access to cash but was concerned about regulatory overreach.
Rupa Huq
Lab
Ealing Central and Acton
Broadened debate from ATMs to bank hubs, expressed frustration with lack of progress on promised bank hubs and questioned if more regulation is needed.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Argued that as cashless transactions increase, the need to maintain free access to cash for vulnerable people increases. Asked for it to be provided for in the Bill.
Called for regulators like FCA to do their job and ensure good financial advice is imparted.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Congratulated the Minister on improving FCA performance but wanted greater opportunity to challenge the FCA through its consumer panel.
Harriett Baldwin
Con
West Worcestershire
Asked the Minister for urgent look into new clause 11 and commitments made.
Stella Creasy
Lab Co-op
Walthamstow
Asked for protection measures for consumers using buy now, pay later services due to high levels of debt and missed payments.
Andrea Leadsom
Con
South Northamptonshire
Agreed with Stella Creasy on the need for regulation but focused more on benefits of green finance.
Olivia Blake
Lab
Sheffield Hallam
Asked how the Minister can square language about financial services with banks providing significant funds to oil and gas companies.
Called for support of new clause 25 regarding bank actions on climate change due to stress tests by Bank of England.
Tulip Siddiq
Lab
Hampstead and Highgate
Supports the Bill's new secondary objectives but opposes the call-in power. She proposes new clauses to strengthen democratic accountability of regulators, enhance fraud prevention, protect access to cash services for vulnerable groups, promote co-operative and mutual business models, and introduce a green finance strategy.
Bim Afolami
Con
Twickenham
Argues that elected government should be able to set the direction for regulators and correct their course if necessary.
John Baron
Con
Basildon and Billericay
Suggests that regulators need to heed advice from professional bodies working in the sector, specifically mentioning issues with key information documents.
Matt Rodda
Lab
Reading Central
Supports new clause 3 for its importance in ensuring access to banking services, especially for disabled and elderly people.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Emphasises that 8 million people across the UK would struggle without access to cash.
Carmarthen East and Dinefwr
Pledges support for new clauses 2 and 3, highlighting the loss of banking services in his constituency and reliance on Post Office.
Vicky Ford
Con
Chelmsford
The insurance sector in my constituency is vital, contributing to GDP and tax revenue. The amendments aim to improve the competitiveness of UK regulators against those in other jurisdictions, reducing compliance burdens for firms and promoting a more proportionate approach to regulation. They seek to introduce specific reporting criteria and key performance indicators to assess how well regulators are supporting economic growth.
Peter Grant
SNP
Glasgow North
Mr. Grant supported new clause 25 on climate change objectives, new clauses 2 and 7 for free access to cash as a legal right, and new clause 36 regarding reporting suspected fraud cases. He highlighted the importance of financial inclusion in ensuring that all constituents have equal access to banking services.
Harriett Baldwin
Con
West Worcestershire
Proposes personalised guidance on financial matters to bridge the gap for constituents who cannot afford financial advice. Cites statistics indicating only 8% of people can afford a financial adviser, while 92% do not have this luxury. Suggests that new MiFID flexibilities could enable such guidance, helping constituents navigate savings and investment choices.
Stephen Timms
Lab
East Ham
Supports the case for personalised guidance but raises concerns about stepping across the advice-guidance boundary, which could affect pension schemes and employers' ability to provide helpful support.
Fully supports the measure and mentions that Just Retirement and Partnership, a company in Reigate, was anxious for people to have access to independent advice rather than only being directed to its own products.
Hayes and Harlington
Concerned that the bill will undermine constraints on commodity market speculation. Cites historical examples of food price increases during the financial crash, emphasising the need for strengthened regulation rather than weakening it.
Chris Grayling
Con
Richmond Park
Mr. Grayling emphasised the need for financial institutions to extend their due diligence processes to cover investments in companies potentially involved in illegal deforestation. He cited examples of banks financing companies that source forest-risk products illegally, and argued that these institutions already carry out extensive due diligence but lack a specific requirement to address illegal deforestation. Mr. Grayling also noted the importance of Earth observation data for tracking supply chains.
Mr. Browne supported the ambition of regulating financial services companies regarding due diligence on forest-risk products but expressed concerns about tracing illegal activities in complex supply chains. He noted that sometimes intermediaries tell their clients they are logging legally when it is not true, making it difficult to track and verify the legality.
Sarah Olney
Lib Dem
Richmond Park
Ms. Olney expresses concern about the lack of parliamentary oversight, potential risks in competitiveness clauses, and missed opportunities to promote green finance and tackle fraud. She supports new clause 17 on accountability but seeks further reporting requirements on financial stability impact. She also highlights the need for a green finance strategy and closing loopholes in push payment scam reimbursements.
Sally-Ann Hart
Con
Dover
New clause 27 is necessary to protect free speech in an increasingly digital world where financial service providers and banks have significant power over individuals' ability to express legal, but different views. It requires financial service providers to explain the reason for a refusal of service and allows the Financial Conduct Authority to intervene.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Supports new clause 10, which would require the FCA’s consumer panel to lay an official report before Parliament. This could improve parliamentary scrutiny of the FCA's performance in protecting consumers from financial abuses.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Mr David Mundell supports the amendment, stating that it is essential to ensure access to cash for those who rely on it, particularly in rural areas. He argues that regulation has positively forced banks to be more constructive, ensuring free access to ATMs and bank branches.
Ms Rosie Winterton highlights the importance of staying for wind-ups and notes that she was unaware David Mundell could not stay. No position on the amendment is explicitly stated.
North Cotswolds
Supports new clause 10, highlighting the importance of accountability and transparency in regulatory actions. Cites an example where pensioners suffered financial shortfalls due to poor advice from independent financial advisers. Emphasises the need for regular reporting on FCA’s engagement with stakeholders and consumer protection measures.
Stella Creasy
Lab Co-op
Walthamstow
Supports new clause 28, which aims to regulate the buy now, pay later industry due to its exploitation of consumers in a cost-of-living crisis. Raises concerns about the lack of regulation and consumer protection for these companies. Cites statistics showing that 41% of all reported crime is accounted for by fraud.
Miriam Cates
Con
North East Cambridgeshire
Supports new clause 27, arguing that payment providers like PayPal should not terminate accounts based on lawful speech. She cites specific cases where PayPal closed the accounts of organisations and individuals expressing critical opinions about lockdown policies and other issues, suggesting this is politically motivated and undermines free speech.
Olivia Blake
Lab
Sheffield Hallam
Although not directly addressing new clause 27, Olivia Blake focuses on the Bill’s lack of climate protections. She argues that financial institutions should be mobilised to support decarbonisation efforts rather than being seen as a threat to environmental goals.
Craig Tracey
Con
North Warwickshire
Mr Craig Tracey calls for definite Key Performance Indicators (KPIs) and metrics to be included in the Bill. He argues that setting out specific expectations will improve regulatory performance and address industry concerns about current regulations being too vague.
Caroline Lucas
Green
Brighton, Pavilion
Ms Caroline Lucas criticises the Bill for failing to deliver on climate change targets. She proposes new clauses that reorient regulatory objectives towards long-term economic resilience and climate action, arguing that without them, the UK risks significant financial losses from delayed climate transitions.
Danny Kruger
Reform
East Wiltshire
Kruger supports new clauses on access to cash and banking services. He highlights concerns over private payment platforms' control over individuals' lives, emphasising the importance of regulatory oversight and personal liberty.
Wera Hobhouse
Lib Dem
Bath
Hobhouse speaks in support of new clauses 34 and 35, advocating for broader investment duties that consider long-term social and environmental factors. She warns about climate-related financial losses and the importance of enabling trustees to make prudent choices.
Bim Afolami
Con
Hitchin and Harpenden
Pays tribute to a Labour councillor, supports new clause 17. Emphasises need for strengthened accountability of financial regulators to Parliament and Government. Advocates for a rethinking of regulatory structure to ensure it aligns with political aims and objectives. Introduces Regulatory Reform Group to work on this issue.
David Simmonds
Con
Ruislip, Northwood and Pinner
Supports the Government's position on the Bill, highlighting its importance for constituents who work in the financial sector. Emphasises the need to right-size regulation according to changing risks and challenges faced by the sector. Discusses balance between financial inclusion and risk management through better regulation. Critiques new clause 27 due to fear of unintended consequences, advocating instead for effective enforcement action rather than new powers.
Anna Firth
Con
Southend West
Supports new clause 17 for providing reasonable access to cash, addressing the loss of high street banks in Southend West. Argues that elderly people need face-to-face financial advice and fair returns on savings, highlighting a £15 billion annual loss for UK savers due to low-interest rates.
Anthony Browne
Con
Weston-Super-Mare
Supports the Bill and several amendments including new clause 27 on freedom of expression and new clause 28 relating to buy now pay later. Stresses the importance of in-person banking and access to free cash, while also questioning the clarity of new clause 7 regarding business customers and foreign exchange.
John Baron
Con
Basildon and Billericay
Welcomes the bill and supports new clause 11. Emphasises the urgent need for financial advice in the UK due to a widening advice gap caused by banks withdrawing from high street investment advice and wealth managers raising minimums. Argues that people of modest means are left without access to good advice, potentially losing out on better investments over long-term periods (e.g., equities beating cash deposits 97% of the time). Calls for regulators to consider trade bodies' concerns about misleading key information documents from the EU and to provide a middle ground in financial advice.
David Simmonds
Con
Ruislip, Northwood and Pinner
Highlights the importance of prioritising detailed back-office work for tracking down fraudsters and scammers in police recruitment.
North Cotswolds
Calls for making fraud a strategic priority for every police force and providing basic training on fraud crimes to all police officers.
Richard Fuller
Con
North Bedfordshire
Asks the Minister about the Government’s initiative on stablecoins and digital currencies, expressing reassurance that it remains a priority.
Tulip Siddiq
Lab
Hampstead and Highgate
Requests further information from the Minister regarding data sharing arrangements beyond just banks to include social media companies, crypto-asset firms, and other platforms exploited by criminals.
Danny Kruger
Reform
East Wiltshire
Requests a direct answer from the Minister on regulatory protection for buy now, pay later loans during the holiday season.
Tulip Siddiq
Lab
Hampstead and Highgate
Despite some disappointments, the Labour Party supports the Financial Services Bill. It enables UK to tailor financial regulation to meet economic needs. The speaker thanked her team for support and expressed appreciation for constructive engagement with Treasury ministers during scrutiny.
Peter Grant
Lab
Glenrothes
Endorsed the previous speakers' thanks, acknowledging reservations about some vote results. The speaker thanked his colleague and SNP research team member for support and stated that while there are concerns, the Bill is 'just about good enough to get through'.
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