Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Financial Services and Markets Bill - Sitting 9

03 November 2022

Proposing MP
Emma Hardy Lab
Kingston upon Hull West and Haltemprice
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses amendments to the Financial Services and Markets Act 2000 to include cryptoassets under financial promotion and regulated activities regulations. Emma Hardy is addressing the regulation of buy now, pay later (BNPL) companies in the UK's Financial Services and Markets Bill. The statement addresses the need for better regulation of buy now, pay later (BNPL) credit products. Emma Hardy is pressing for a new clause to ensure local communities have access to essential in-person banking services. The MP is proposing new clauses related to the review and policy statement on essential in-person banking services for local communities in the UK. Emma Hardy discusses the importance of essential in-person banking services for vulnerable individuals, including those with visual impairments. The statement discusses the challenges faced by individuals who cannot switch to online banking and highlights the importance of regulation to ensure access to essential financial services. Emma Hardy discusses accessibility issues faced by visually impaired individuals when using touchpads in shops. The statement discusses the evolution of banking services in response to changing consumer behavior and the importance of industry-led initiatives to mitigate the impact of bank branch closures. Emma Hardy highlights a specific type of fraudulent message targeting parents, where scammers pose as children to骗取父母的钱财。请重新描述这段陈述的内容，确保符合指令要求。」 让父母转账的欺诈信息。 Emma Hardy supports the proposal for a national fraud strategy as part of the Financial Services and Markets Bill. The Minister announces the Government's commitment to publish a national strategy to address fraud, recognizing the need for a unified response from government, law enforcement, and the private sector.

Action Requested

The amendment aims to clarify that powers related to financial promotion and regulated activities can be applied to cryptoassets, with a defined term for 'cryptoasset' and the ability to amend this definition through regulation.

Key Facts

  • FSMA 2000 is amended to include cryptoassets in restrictions on financial promotion and regulated activities.
  • The Treasury may regulate the definition of 'cryptoasset'.
  • Section 417(1) includes a new definition for 'cryptoasset' involving distributed ledger technology.
  • Buy now, pay later companies offer consumers the opportunity to spread payments but remain unregulated.
  • In 2021, Citizens Advice reported that 41% of BNPL users had struggled to make a repayment.
  • Research by StepChange showed that 40% of BNPL customers took negative coping actions due to debt accrued through this service.
  • The Woolard review reported in February last year.
  • Many consumers do not know that buy now, pay later products are a form of credit.
  • The FCA investigation found risks associated with taking out such products.
  • Emma Hardy presses New Clause 4 for a vote.
  • The Committee divided: Ayes 6, Noes 8.
  • The Treasury and FCA must jointly undertake a review of access to essential in-person banking services.
  • An essential banking services access policy statement is required from the Treasury within six months of the Act's passing.
  • Essential in-person banking services include those delivered face-to-face, provided in banks or hubs.
  • New clause 4 would require a review by the Treasury and FCA on community needs for in-person banking services.
  • New clause 5 would mandate the publication of policies regarding essential in-person banking services.
  • Analysis shows that nearly half of UK bank branches have closed since 2015, affecting millions of people.
  • The closure of bank branches in town centres is increasing financial fraud.
  • The CASH Coalition has been working on this issue but requires regulatory support.
  • Many constituents cannot participate in online banking due to IT and tech limitations or personal circumstances.
  • Emma Hardy highlights difficulties faced by visually impaired people with touchpad payment systems.
  • The issue is noted as one where technological advancement inadvertently causes discrimination against certain groups.
  • The Minister commits to reviewing the problem.
  • 86% of transactions are now digital.
  • Banking hubs have been committed in 29 locations across the UK, with further commitments made for Luton, Surrey, Prestatyn, and Welling.
  • Emma Hardy收到一个声称是她女儿发来的短信，要求转钱到指定号码。
  • 她的女儿们确认没有发送这样的信息。
  • 这种诈骗信息以“嗨妈”开头，已经让许多人上当受骗。
  • Mike Haley, CEO of CIFAS, supports the idea of a national strategy focused on prevention.
  • The Home Office is planning to publish a delayed national strategy.
  • Fraudsters do not distinguish between public and private sector fraud targets.
  • Data sharing across payment providers, fintechs, and telecos could be powerful in preventing volume crimes.
  • Government committed to publishing a national anti-fraud strategy.
  • Strategy will be led by the Home Office with Treasury input.
  • Expected publication date is later this year.
▸ Assessment & feedback
Summary accuracy