Tag: financial services

Financial Services Bill: Bishop of St Albans tables amendment on regulation of financial advice

The Bishop of St Albans tabled his amendment 136 to the Financial Services Bill in Grand Committee on 3rd March 2021, and spoke in support of a further amendment on debt financing:

The Lord Bishop of St Albans [V]: My Lords, I shall speak to Amendment 136, which is in my name. I tabled the amendment because of concerns about the lower levels of responsibility placed on appointed representatives and the increased risk of poor financial advice that this poses.

The objective of the senior managers and certification regime to influence an individual’s behaviour by making them personally accountable to the regulator is one that I agree with and it was the correct response to the culture that had arisen in the City of London prior to the financial crash in 2008. I know that some Members of this House have criticised the application of the senior managers and certification regime, or lack of it, by the FCA, and I agree that it is worrying. However, I do not want to comment on the effectiveness of the SMCR but to remedy an anomaly that exists within the current framework.

The SMCR currently applies to directly regulated financial advisers, yet it does not extend to those who are appointed representatives. This anomaly means that, while a directly regulated adviser carries a personal responsibility for the quality of the advice they provide to their customer, no such responsibility is incumbent upon the adviser who is an appointed representative. This is despite the reality that a customer seeking financial advice is unlikely to know the difference between the two types of adviser and the possible effects that this might have on the quality of the advice they receive.

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Financial Services Bill: Bishop of St Albans speaks at second reading

The Bishop of St Albans spoke at the second reading of the Financial Services Bill on 28th January 2021, raising issues of ethical investment and tax avoidance:

The Lord Bishop of St Albans: My Lords, it is right to underline the importance of the financial services sector in our country and the huge contribution it makes. There are many laudable things in this Bill: the strengthening of money laundering regulations; encouraging saving; and the creation of parity between white collar crimes, such as market manipulation, and general fraud by extending the maximum sentence.

I was disappointed, however, to hear that the Commons amendment exploring the whole issue of ethical investment with reference to genocide did not make it into the Bill. I understand the Government’s reservation—they do not want to politicise the FCA. Nevertheless, I hope that “global Britain”, as laid out by the intentions of the Bill, will also be very much “ethical Britain” as we place ourselves in the world under the new freedoms that we have. I also note, with other noble Lords, the concern that there seems to be so little clarity on the question of parliamentary scrutiny. I am sure we will return to this as the Bill passes through your Lordships’ House. Of course, fundamental to this whole future is that the FCA is adequately resourced to fulfil its task.

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Bishop of St Albans chairs debate on tax justice

On 21st January 2021, the Bishop of St Albans chaired a debate on a reports by Church Action for Tax Justice:

The Lord Bishop of St Albans: To ask Her Majesty’s Government what assessment they have made of the reports by Church Action for Tax Justice (1) Tax for the Common Good, published in February 2019, and (2) Fair Tax Now, published on 4 January 2021.

My Lords, I thank all those speaking in this evening’s debate. I am no expert on tax, but it does not take an expert to see that there are some deeply entrenched tax inequalities. This 2019 report by Church Action for Tax Justice, and its 2021 report, Fair Tax Now, are more relevant than ever, not least with the financial impacts of the Covid-19 pandemic being felt in all parts of society, and with Her Majesty’s Government’s commitment to “levelling up”.

The proposals laid out by Church Action for Tax Justice seek not to harm wealth generation, but to level the playing field and facilitate a fairer tax system that ensures that those with the deepest pockets do their duty to the societies that provided the context in which they were able to amass their wealth. This is a vast topic, so I will make a couple of preliminary comments and then suggest four of the most important areas that must be addressed.

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Bishop of Birmingham speaks about banking reform

Birminghamsizedebate171219bOn 3rd September 2019 the Bishop of St Albans  led a debate on a motion to ask the Government “what assessment they have made of the implementation of the recommendations of the Parliamentary Commission on Banking Standards and the opportunities for further banking reform”. The Bishop of Birmingham, Rt Revd David Urquhart, also made a contribution:

Lord Bishop of Birmingham: My Lords, I am grateful to my right reverend friend for leading this debate and I welcome the Minister to his new role. I want to focus on the recommendations in the original report—the references in paragraph 138 of the summary, volume 1—which looked at culture change. The response of the banking industry to that challenge came through a report produced by Sir Richard Lambert, which said that if the banks didn’t face up to this, there will be further intervention, regulation and direction. As a result, the UK Banking Standards Board was set up in 2015. I declare my interests in that I am a founder member of that board and also part of the ad hoc Financial Exclusion Committee which has been referred to already.

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Bishop of St Albans leads Lords debate on progress made in banking reform

St Albans 2On 3rd September 2019 the Bishop of St Albans, Rt Revd Alan Smith, led a debate in the House of Lords on a motion to ask Government “what assessment they have made of the implementation of the recommendations of the Parliamentary Commission on Banking Standards and the opportunities for further banking reform”. The Bishop of Birmingham also made a contribution, which can be found here. The Bishop’s speech introducing the debate is below, as is the Government response:

Lord Bishop of St Albans: My Lords, I add my welcome to the noble Lord, Lord Bethell, in his new role and I look forward to working with him.

I begin by acknowledging that the banks have an important role in our society today. They do many good things—they employ more than 1 million people and pay more than £60 billion in tax annually—but, despite the many good things they do, we are also aware of the history of recent years. We are now 11 years on from the financial crash and six years on from the publication of the report by the Parliamentary Commission on Banking Standards, and it is almost three years to the day since I last secured a debate on this topic.

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Bishop of Birmingham asks Government to increase support for the financially excluded

birmingham-211016cOn the 18 December 2017 Baroness Tyler of Enfield led a debate on the report of the Select Committee on Financial Exclusion –  Tackling Financial Exclusion: A country that works for everyone? (Session 2016-17, HL Paper 132). The Bishop of Birmingham, the Rt Revd David Urquhart was a member of the Committee, and spoke in the debate:
The Lord Bishop of Birmingham: My Lords, as we resume the debate on Tackling Financial Exclusion: A Country that Works for Everyone?, there can be no more poignant reminder of the issues raised in the committee’s report and the seriousness with which we need to take its challenge. As the Bishop of Kensington said in the service [for Grenfell Tower survivors and community] just mentioned by the noble Lord, Lord Bourne, we can be too wrapped up in our own interests and prosperity, but we might just now turn outwards towards each other—a society known for listening, compassion and love.

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Bishop of Southwark asks Government when it will implement Banking Standards Commission recommendations

southwark-20feb17On the 6th September 2017 Lord Leigh of Hurley asked Government “whether it is their policy to reduce unnecessary regulation of financial services; and if so, whether they intend to review current Financial Conduct Authority practices to ascertain whether that regulator is going beyond what is appropriate and necessary to fulfil that policy.” The Bishop of Southwark, the Rt Revd Christopher Chessun asked a follow up question:

The Lord Bishop of Southwark: My Lords, when do Her Majesty’s Government intend to implement in full the principal recommendations of the Parliamentary Commission on Banking Standards, published in June 2013?

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Bishop of St Albans supports stronger relationship between credit unions and schools

On 3rd February 2015, Lord Kennedy of Southwark asked Her Majesty’s Government when they plan further reform of the law regarding Credit Unions. The Bishop of St Albans, the Rt Revd Alan Smith, asked a supplementary question:

Bishop of St AlbansThe Lord Bishop of St Albans: My Lords, I imagine many of us are concerned about the culture of debt that seems to be normative in many parts of our society. In the light of this, can the Minister tell us whether the Government have any plans, first, to encourage all schools to consider working closely with credit unions, as in the case of the credit union in St. Albans, where I come from and, secondly, to further roll out and encourage payroll savings schemes as part of a wider initiative to encourage saving and financial responsibility across society?

Lord Newby: My Lords, the Government support both those concepts. The right reverend Prelate will be aware that the Government have been working with the Archbishop of Canterbury’s task force on affordable credit and savings to institute the LifeSavers project, under which primary schools are working with credit unions to encourage young children into good savings habits and raise awareness of credit unions.

(via Parliament.uk)

Bishop of St Albans presses Government to tackle cold calling by payday lenders

On 17th November 2014, Liberal Democrat Peer Lord Sharkey asked Her Majesty’s Government what steps they are taking to bring organisations which make cold calls connected with the promotion, or sale, of financial services or products under the regulation of the Financial Conduct Authority. The Bishop of St Albans, the Rt Revd Alan Smith, asked a supplementary question:

Bishop of St AlbansThe Lord Bishop of St Albans: My Lords, I wonder if I could press the Minister again, particularly on payday loans. The recent report published by the Children’s Society, Playday not Payday, has highlighted the regulatory gap whereby payday loan companies can make unsolicited marketing calls, whereas, as we have heard, mortgage providers are not allowed to. That report showed that over 40% of people who have taken out payday loans are receiving on average more than one unsolicited phone call a day. Does the Minister not agree that the provisions that prevent the mortgage providers from making that sort of marketing approach really must now be brought in for the payday loan companies in order to protect those who are most vulnerable?

Lord Newby: The very specific arguments that apply in respect of mortgages do not apply to payday loans. The key thing about payday loans at the moment is that the payday loan companies are being regulated for the first time, which is leading to a collapse in the number of payday loan companies, so that it is expected that we may end up with as few as four payday loan companies in operation at the end of this process. However, the FCA is undertaking an in-depth thematic review of the debt management sector to assess the quality of advice and the area mentioned by the right reverend Prelate. If it finds substantial evidence of consumer detriment of the kind he suggests, it will be able to consider the scope of further regulations.

(via Parliament.uk)

Bishop of St Albans receives written answer on financial advisory services

On 3rd November 2014, the Bishop of St Albans received an answer to a written question on the subject of financial advisory services.

Bishop of St AlbansThe Lord Bishop of St Albans: To ask Her Majesty’s Government how the provision of money management, budgeting and debt advice by local authorities and social sector landlords is being monitored.[HL2156]

The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon): The Department for Work and Pensions are currently undertaking a review into how local welfare provision has been used in 2013/14 and its anticipated use in 2014/15 which will be published in due course. In addition, as part of its work on Universal Credit, the Department is commissioning budgeting support for claimants who need help and is establishing local delivery partnerships with local government to help provide this.

The Government-funded Money Advice Survey offers advice on managing personal debt, money management and budgeting. Face to face debt advice is provided by Citizens Advice, under contract with the Money Advice Service.

Department for Business Innovation and Skills also provide funding for the Citizens Advice Bureau, which provides people with advice on debt and other issues.

More generally, the Department for Communities and Local Government issued guidance to councils last year on good practice in the collection of council tax arrears. The actions of local authorities (in relation to service failures, maladministration or injustice) can be investigated by the Local Government Ombudsman, whilst the Housing Ombudsman Service looks at complaints about social landlords.

(via Parliament.uk)