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The Economic Crime and Corporate Transparency Bill - Schedule 3 - Prudential regulation of credit institutions etc.
13 January 2021
Lead MP
John Glen
Debate Type
Bill Debate
Tags
Crime & Law EnforcementStandards & Ethics
Other Contributors: 35
At a Glance
John Glen raised concerns about the economic crime and corporate transparency bill - schedule 3 - prudential regulation of credit institutions etc. 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 beg to move, That the clause be read a Second time. This amendment aims to enhance prudential regulation for credit institutions and other financial entities to prevent economic crime and ensure greater corporate transparency. The proposed regulations will strengthen oversight of financial transactions and improve data integrity within the sector, thereby reducing the risk of misuse or fraud.
John Glen
Con
Salisbury
I propose this amendment to enhance prudential regulation for credit institutions and other financial entities to prevent economic crime. The aim is to strengthen oversight of financial transactions, improve data integrity within the sector, and reduce the risk of misuse or fraud.
Jim Shannon
DUP
Strangford
Asked about discussions with police and Northern Ireland Assembly regarding stopping paramilitary groups in Strangford from using money laundering. Emphasised the importance of addressing this issue within the context of the legislation.
Kevin Hollinrake
Con
Thirsk and Malton
Cited evidence that UK regulators are not holding corporations or individuals accountable for egregious behavior, particularly in banking. Highlighted the disparity between fines imposed in the US (£9 billion) versus the UK (£260 million). Argued this discrepancy necessitates legislation to prevent economic crime.
Chingford and Woodford Green
Asked if any UK Government would authorise trade arrangements on a special basis with any country guilty of genocide, implying that such actions should be scrutinised carefully.
Angela Eagle
Lab
Wallasey
Expressed frustration over the lack of progress in solving issues faced by mortgage prisoners and those trying to tackle financial crime, despite technical reasons given by Ministers for not proceeding with certain measures.
Edward Leigh
Con
Gainsborough
Used the opportunity to reassure Gibraltar that its financial services are safe under this Government and Bill.
Rosie Winterton
Lab
Nickleby and Congleton
Introduced a five-minute time limit to accommodate colleagues and warned that the time might be shortened later.
Pat McFadden
Lab
Wolverhampton South East
Amendment 1 seeks to include net zero goals in the remit of financial services regulators, aligning with existing commitments and the Chancellor's vision. It aims to facilitate a move towards green finance globally.
Angela Eagle
Lab
Wallasey
Intervened to argue that the Government’s approach to Brexit negotiations has discouraged EU incentives for equivalence arrangements, thus prompting job and trading migration from London. Emphasised the threat this poses to jobs in the City and tax revenue for the Exchequer.
Kevin Hollinrake
Con
Thirsk and Malton
Intervened to highlight that the amendment allows for corporate prosecution and individual accountability, crucial for stamping out corporate abuse and failures.
Chingford and Woodford Green
Supports the amendment to hold companies accountable for trading with regions involved in genocide. Argues that past genocides have gone unaddressed due to international diplomatic constraints, highlighting examples like the Rohingya crisis and Uyghur persecution in China.
Alison Thewliss
SNP
Glasgow Central
Ms. Thewliss supports amendments to mitigate Brexit's impact on financial services, tackle money laundering and tax avoidance, and improve consumer protection for schemes such as buy-now-pay-later options. She also raises concerns about the lack of oversight for electronic payment institutions and calls for a specific committee to oversee new regulatory powers.
John Baron
Con
Basildon and Billericay
Argues that KIDs are misleading for both risk assessment and performance projection. Proposes the suspension or exclusion of KIDs from scope to prevent harm to investors, especially less experienced ones.
Margaret Hodge
Lab
Birkenhead
Supports new clause 4 which would introduce a criminal offence for failing to prevent economic crime. Emphasises the need for stronger enforcement against fraud and corruption, highlighting weaknesses in current laws and the importance of protecting Britain's financial services sector reputation.
Hayes and Harlington
Mr. McDonnell supports new clause 1 which would require the Government to publish a report on the conduct of financial services businesses, focusing on illegal practices like tax evasion and money laundering. He also calls for stronger regulation through amendments that increase parliamentary scrutiny over the Financial Conduct Authority (FCA). Mr. McDonnell highlights recent scandals such as those involving London Capital & Finance and Woodford Equity Income Fund to illustrate the need for reform.
Mr. Maynard supports new clause 7, advocating for accelerated regulation of the 'buy now, pay later' (BNPL) sector before significant issues arise. He emphasises that while there is a legitimate market for BNPL services, it must ensure consumer protection and prevent regulatory capture by major players.
Yvonne Fovargue
Lab
Vale of Clwyd
Supports new clause 7, breathing space for debtors and a statutory debt repayment scheme. Calls for regulation on buy now pay later services due to potential misuse as high-cost credit. Advocates for suspension of bailiffs' visits during pandemics and longer repayment periods. Supports the intention that people seeking debt advice should not be charged but raises concerns about creditor objections.
Andrew Mitchell
Con
Sutton Coldfield
Supports new clause 4 to facilitate economic crime legislation and amendment 7, the genocide clause. Argues for more resources at Companies House to fight economic crime. Highlights cases of alleged genocide perpetrators in the UK and urges the Government to bring them to justice.
Seema Malhotra
Lab Co-op
Feltham and Heston
Supports new clauses 24-26 for mortgage prisoners. Argues that SVR rates for inactive lenders are much higher than active lenders, leading to significant financial stress and potential home loss. Calls for expansion of regulatory perimeter and consumer protections.
Stella Creasy
Lab Co-op
Walthamstow
Ms. Creasy speaks in favour of new clause 7, which aims to regulate the unregulated 'buy now, pay later' market due to its potential for debt exploitation and lack of consumer protection.
Ms. Richardson supports government amendments 27 and 28 but does not support new clause 7. She believes that legislating before a full review could restrict understanding of the market's dynamics.
Kenny MacAskill
SNP
Na h-Eileanan an Iar
Argues for significant changes in legislative framework to tackle corporate crime and economic fraud, highlighting instances of financial scandals such as LIBOR, forex, and Serco. He calls for greater fairness between individuals and corporations, suggesting that shareholders and corporate leaders should be held accountable.
Bim Afolami
Con
Hitchin and Harpenden
Supports the Government amendments 22 and 23 which clarify that non-UK firms are not within the scope of the rules on parent undertaking. He emphasises the importance of attracting companies and investment globally rather than focusing solely on European standards, advocating for a regulatory framework that allows the UK to compete effectively in a global market.
Christine Jardine
Lib Dem
Edinburgh West
Endorses new clause 7 by the hon. Member for Walthamstow, which would regulate buy now, pay later lending under FCA regulatory ambit to prevent financial exploitation due to the economic downturn caused by covid. She highlights the potential scale of debt repayment issues affecting millions in arrears and priority debts.
Kevin Hollinrake
Con
Thirsk and Malton
Hollinrake supports new clauses aimed at holding individuals accountable for corporate fraud and money laundering. He argues that allowing people to steal, defraud, launder, and lie undermines faith in the free market system. He highlights the disparity between fines levied in the US (£9 billion) compared to those in the UK (£260 million). Hollinrake also supports new clause 25, which addresses mortgage prisoners by preventing their mortgages from being sold to vulture funds.
Salford
Supports new clause 2 with suggestions for extending breathing space and eliminating midway review requirements. Argues that any debt respite scheme must be accompanied by effective and accessible debt solutions to tackle household debt exacerbated by the pandemic. Proposes capping interest rates or overdraft fees, creating a consumer version of UK Asset Resolution, and considering a debt jubilee to write off unrepayable debts.
Welcomes the assistance given to financial services in Gibraltar and technical changes related to markets. Supports new clause 6, which promotes FinTech growth. Expresses sympathy for new clause 4 regarding reform of corporate criminal liability but suggests waiting for Law Commission's report. Emphasises need for equivalence agreements with EU partners without immediate legislative action.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Supports amendments to ensure regulators take into account the target of achieving net zero carbon emissions by 2050. Urges immediate action rather than future consideration, citing climate emissions' long-term impacts and the urgent need for regulatory adaptation.
Jessica Morden
Lab
Newport East
Supports new clause 7 to regulate buy-now-pay-later operators by FCA. Argues that the popularity of this unregulated industry has risen due to the pandemic, with companies targeting young consumers through social media and celebrity influencers.
Angela Eagle
Lab
Wallasey
Raises concerns about the Government’s decision to pursue a hard Brexit, leading to loss of passporting rights for UK financial service companies. Highlights the risk of losing jobs and tax revenue due to lack of equivalence with EU countries. Calls for urgent steps against financial crime, noting that one in five people fall victim to fraud annually and £6 billion of organised fraud is committed against businesses.
John Glen
Con
Salisbury
Defends the Government's approach, noting actions taken on economic crime and emphasising that regulatory regimes evolve over time. Rejects amendments to bring additional activities into FCA regulation before the Woolard review is complete. Argues against requiring regulators to have regard to broader objectives unrelated to prudential standards.
Pat McFadden
Lab
Wolverhampton South East
Acknowledges the need for post-Brexit stability in regulation and recognises the Government's resistance to most amendments. Raises key issues such as crime and money laundering, consumer debt and protection, mortgage prisoners, and broader financial services considerations. Emphasises the importance of not taking a slash-and-burn approach to regulation.
Alison Thewliss
SNP
Glasgow Central
Reflects on cross-party agreement in Committee and debates, urging the Government to recognise the importance of putting scrutiny measures in place. Highlights the need for further action by Government on money laundering, fraud, economic crime, and consumer protection. Thinks there is a broad agreement on scrutiny but calls for more power in the House of Commons.
Christine Jardine
Lib Dem
Edinburgh West
Reiterates support for the financial services sector and its importance to the economy. Hopes that the Government takes on board comments from different parties regarding protection of consumers from unscrupulous operators, which is vital for economic recovery.
Jim Shannon
DUP
Strangford
Praises the Minister's prompt responses and expresses hope that the Bill will provide high standards for financial services. Emphasises protection for small businesses, access to cash, consumer protection, accountability for multinationals in tax payments, and addressing money laundering.
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