Key Facts

• Tea and coffee are not allowed during sittings.
• Social distancing must be maintained.
• The selection list for today’s sitting shows how amendments have been grouped together.
• The amendment is part of clause 1 which exempts certain categories of investment firms from capital requirements.
• It aims to address concerns about potential over-leveraging and lack of resilience in banks, as seen during the financial crisis where Royal Bank of Scotland was leveraged at a ratio of 50:1.
• The report must cover impacts on three areas: financial stability, competitiveness, and consumer risk.
• The amendment aims to ensure that changes are worthwhile and valid.
• The speaker acknowledges the unpredictability of future risks.
• Assessment will be conducted to protect both consumers and businesses.
• Angela Eagle supports an amendment to the Financial Services Bill.
• The bill diverges from EU regulations before the transition period is over, particularly in capital requirements regimes.
• The amendment calls for a public impact assessment of the proposed regulatory changes.
• The Financial Services Bill is part of the Government’s strategy for financial services post-transition period.
• Amendment 19 seeks to add a requirement for the Secretary of State to publish a report within three years assessing impacts on financial stability, competitiveness and consumer risk.
• The FCA will implement rules for the investment firms prudential regime when the UK leaves EU alignment provisions.
• The amendment seeks transparent publication of impact analyses.
• The legislation gives the FCA responsibility to consider consumer, market, and firm impacts.
• There is a 12-week consultation period for the future regulatory framework starting from October 19.
• Philip Davies acknowledges Pat McFadden's soft-spoken nature.
• The concern is about social distancing measures affecting communication in Committee Room 14.
• Investment firms supervised by the FCA or PRA will be removed from the capital requirements regulation for banks.
• Only credit institutions and PRA-designated investment firms will remain under the CRR.
• The smallest FCA investment firms will be exempt from reporting requirements.
• Schedule 1 complements clause 1 of the Financial Services Bill.
• It makes consequential amendments to the Capital Requirements Regulation 2013 and the Capital Requirements (Country-by-Country Reporting) Regulations 2013.
• The schedule aims to remove FCA investment firms from banking rules while keeping systemically important ones under PRA regulation.
• Amendment 20 aims to require FCA consideration for the UK’s net zero 2050 goal.
• Amendment 39 ensures consideration of the impact on climate change commitments before rules are made.
• Amendments 24 and 42 similarly address CRR rules, aiming to incorporate emissions targets and climate change considerations.
• Amendment 20 focuses on the new accountability framework for the FCA set out in schedule 2.
• The current list includes international standards, UK’s relative standing as a place to do financial business, and matters specified by the Treasury.
• The UK committed to net zero emissions of all greenhouse gases by 2050 through the Climate Change Act 2008 under Labour Government and later commitment in 2019.
• Finance will play a significant role in achieving targets such as quadrupling low carbon electricity supply, complete automotive transition, large programme of investment in buildings and heating, afforestation, changes in farming and food production, and return of carbon capture and storage.
• The Financial Services Bill is described as one of the most significant pieces of legislation since World War II.
• Green gilts have been issued by other countries and are often oversubscribed, indicating investor appetite for green finance products.
• Mark Carney was appointed to champion green financial innovations.
• Amendments 39 and 42 would ensure rules consider their impact on meeting international and domestic commitments on tackling climate change.
• The Chancellor's statement from November 9th aimed to lead in green finance but missed the mark in the current Bill.
• Scotland aims for a 75% reduction in emissions by 2035, net zero carbon emissions no later than 2040 and net zero for all emissions by 2045.
• The UK will host COP26 in Glasgow next year.
• The amendment has the support of all political parties.
• The Bill covers legislation on £10 billion market for packaged retail and insurance-based investment products (PRIIPS).
• The Prime Minister's 10-point plan aims to deliver a green industrial revolution.
• Amendment 20 and 39 aim to insert net zero targets into the FCA’s accountability framework.
• Amendment 42 is similar for the Prudential Regulation Authority's accountability framework.
• The Treasury has a power to specify further matters in both frameworks at a later date.
• The amendment to put green finance requirements into the bill was defeated with Ayes 6 and Noes 10.
• The Minister indicates that the Government will carefully consider incorporating green finance requirements in the future regulatory framework.