Key Facts

• Clause 46 relates to the accountability of the Payment Systems Regulator.
• Amendments include changing definitions to accommodate both fee-based and free cash deposit, withdrawal, and access services.
• New clauses propose guaranteed minimum provision for free cash access services and a duty for the FCA to monitor and publish data on levels of cash acceptance.
• New clause 12 proposes regulations by the Treasury to ensure a minimum level of free cash access for small businesses.
• West Dunbartonshire has seen a 27% drop in ATM access over four years, with only three or four bank branches remaining.
• UK consumers can access cash from over 55,000 ATMs and 11,500 post offices.
• The LINK network handles around 1.6 billion transactions per month.
• Two bank closures have occurred in Bailey's constituency within the last 18 months.
• The constituency represented by Bailey includes the fourth most deprived ward in the west midlands.
• Constituents are concerned about being charged for ATM services, which can be a barrier to accessing cash.
• Ten per cent of UK adults, or 5.4 million people, rely on cash to varying extents in their daily lives.
• The number of free-to-use ATMs has decreased by nearly 24% since August 2018, while the number of pay-to-use ATMs has increased significantly.
• Since 2015, the UK has lost more than half its branch network, at a rate of 54 branches per month.
• Since 2015, almost 6,000 bank branches have closed.
• In July 2022, there were around 12,000 fewer free-to-use ATMs in the UK compared to August 2018, a decrease of nearly 24%.
• The use of cash has increased recently due to the cost of living crisis.
• Clause 47 introduces schedule 8 which grants FCA responsibilities for cash access.
• Andrew Griffith's constituency has fewer free-to-use ATMs compared to Kingston upon Hull West and Hessle with reportedly 120 free-to-use ATMs.
• The policy statement will be published after Royal Assent is achieved.
• Clause 47 addresses statutory protection for access to cash.
• Amendments 40, 16 to 18 concern free-of-charge cash deposit and withdrawal services.
• New clauses 10, 11 and 12 aim to specify minimum levels of provision for free cash access and place a duty on the FCA to monitor cash acceptance.
• Amendment 19 calls for FCA to publish criteria and assessments.
• Amendments 20 and 21 allow for requests from the public, elected officials, community groups, etc., for reviews of local access to cash needs.
• The amendments aim to ensure transparency and consumer confidence in the regulatory process.
• Amendments 19 and 20 seek to introduce requirements on the FCA regarding cash access services.
• Proposed new section 131V of FSMA 2000 requires the FCA to consult on regulating access to cash before making rules.
• The Bill provides powers for the FCA to designate entities and issue directions, ensuring reasonable provision of cash access services.
• Clause 48 gives new powers to the Bank of England to oversee the wholesale cash distribution industry.
• Schedule 9 enables the Treasury to make a wholesale cash oversight order, specifying an entity as recognised with market or systemic significance.
• The regime includes principles and codes of practice, information gathering, directions, inspections, fee collection, and enforcement by the Bank of England.
• Schedule 11 expands the existing CCP resolution regime introduced in 2014.
• It provides the Bank of England with comprehensive tools to protect financial stability.
• The new powers include imposing losses on a failing CCP before recovery measures are exhausted.
• Amendments correct cross-references and widen the scope of provisions related to CCPs.
• The amendments ensure that Northern Ireland legislation is included in relevant lists.
• Continuity obligations are provided despite entering insolvency under specified legal sections.
• The UK insurance industry is the largest in Europe and fourth largest globally, managing investments of more than £1.8 trillion.
• Schedule 12 introduces the role of a write-down manager who monitors a reduction in an insurer’s contracts to protect creditors and policyholders.
• Part 4 of schedule 13 requires the PRA to amend rules governing the Financial Services Compensation Scheme for top-up payments.
• Amendment 32 ensures exclusions apply during moratoriums on legal proceedings, mirroring similar provisions in schedule 13.
• Clause 52 adds responsibilities conferred by the Bill and future regulations to FSMA.
• Clause 53 enables disciplinary action against unauthorised firms for misconduct committed while authorised.
• Clause 54 allows regulators to impose conditions on new controllers of financial services firms when it advances their statutory objectives.
• Clause 55 removes requirements for the FSCS to have an accounting officer and the Treasury’s power to require certain information related to accounts.