Tag: financial services

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)

Archbishop of Canterbury takes part in Report Stage of Financial Services (Banking Reform) Bill

On 26th and 27th November 2013, the Archbishop of Canterbury, the Most Revd and Rt Hon Justin Welby, took part in both sittings of the Financial Services (Banking Reform) Bill’s Report Stage.  

Archbishop of CanterburyOn the first day of the Report Stage, he spoke about the need for the new ring-fencing structures to be supported by a ‘second reserve power’ which would give the regulator the power to fully separate all banks in the industry if one or more banks were gaming the new rules. He led a group of amendments on behalf of the Parliamentary Commission on Banking Standards, which would institute a rigorous licensing regime for significant bank employees who are not senior management. He also spoke about the need for specific measures to be developed to ensure that banks and their employees complied with anti-money laundering laws.

The Archbishop of Canterbury spoke twice during the second and final day of Report Stage. He spoke in support of Amendment 164, tabled by Lord Phillips of Sudbury, which would require a review to be undertaken into the current exemptions some banks and similar institutions enjoy from the Gaming Acts, on transactions which could be understood as gambling. He suggested that a review should examine what impact he current situation has on the culture in these institutions. He also led the debate on the Parliamentary Commission on Banking Standards’ amendment on leverage ratios. He highlighted the important role that the leverage ratio plays in the ‘tool-kit’ available to the Bank of England, and warmly welcomed the Government’s announcement that the Bank of England would undertake a review into its powers to set the leverage ratio and make recommendations on what further powers it may need.

Continue reading “Archbishop of Canterbury takes part in Report Stage of Financial Services (Banking Reform) Bill”

Bishop of Birmingham supports amendment to Banking Reform Bill

“In the wake of the economic debacles following 2008, one of the greatest areas of concern among the public was the apparent lack of change in the financial fortunes of those whom they viewed as being most responsible for the banking crisis.”

On 23rd October 2013, the Bishop of Birmingham, the Rt Revd David Urquhart, spoke during the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of an amendment tabled by Lord Turnbull, to require that banks and other financial institutions abide by a ‘remuneration code’, implemented and enforced by the financial regulator. The amendment, based on a recommendation by the Parliamentary Commission on Banking Standards, was not pressed to a vote during Committee Stage.

01.04.14 Bishop of BirminghamThe Lord Bishop of Birmingham: My Lords, I rise to speak on behalf of the most reverend Primate the Archbishop of Canterbury. He regrets very much that he cannot be in his seat today, but it is seldom that one has the opportunity to offer Christian baptism to a young couple, particularly when their child is a future heir to the throne of this country. None the less, I know that he, like me, would want to echo the support for these amendments, which have been spoken to by the noble Lords, Lord Turnbull and Lord Eatwell. In a sense, I now regret that I am here doing my duty, because I could not have put it better myself.

In the wake of the economic debacles following 2008, one of the greatest areas of concern among the public was the apparent lack of change in the financial fortunes of those whom they viewed as being most responsible for the banking crisis. As we have heard, the salaries of senior bankers seem to remain high and bonus levels have quickly regained their old levels, while for many ordinary people and ordinary businesses across the country, it has been a matter of tightening the belt and looking very seriously at difficult household and commercial budget decisions. The submission of the Church of England’s Mission and Public Affairs Council to the banking commission said of this disparity between what I am going to talk about as two cultures that it,

“has gravely harmed the public perception of banking”. Continue reading “Bishop of Birmingham supports amendment to Banking Reform Bill”

Archbishop of Canterbury backs calls for review into gambling in the financial sector

On 15th October 2013, the Archbishop of Canterbury, the Most Revd and Rt Hon Justin Welby, spoke during the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of an amendment tabled by Liberal Democrat Peer Lord Phillips of Sudbury, which sought to require a review to be undertaken into the current exemptions some banks and similar institutions enjoy from the Gaming Acts, on transactions which could be understood as gambling. Following the debate on the amendment, it was withdrawn.

Archbishop of CanterburyThe Archbishop of Canterbury: My Lords, I am slightly surprised that the Minister should be resistant to what seems to me a very reasonable amendment. One of the dangers that we have faced in the markets over many years is that of parallel markets. The derivatives markets are, as we know, opaque, as has already been remarked on, and we examined them in some detail in the banking standards commission. The computer-driven markets are also very opaque. We examined those markets and remarked that they would constitute the next great crash. When you have these gambling markets on the side that no one quite understands or knows who is participating in them, and which often take place offshore, it seems to me that at the very least there are grounds to hold an inquiry into the effect they are having on market prices through their impact on the shadow market—we should also examine the psychology of the dealers—and on those involved directly in the more regulated market. Continue reading “Archbishop of Canterbury backs calls for review into gambling in the financial sector”

Archbishop of Canterbury supports “second reserve power” amendment to Banking Reform Bill

“The amendment—and this is why the element of culture is so important—increases vastly the voltage of the ring-fence. If it has to be used, like much of these forms of regulation, it will have failed to some degree. But it says that, if the industry loses its way in ethics and culture, as it did in the early years of this century, there is catastrophe in regulatory terms.”

On 8th October 2013, the Archbishop of Canterbury, the Most Revd. and Rt Hon. Justin Welby, spoke on the first day of the Committee Stage of the Financial Services (Banking Reform) Bill. He spoke in support of Lord Turnbull’s amendment, based on the recommendation made by the Parliamentary Commission on Banking Standards, which sought to introduce a second reserve power to “implement full separation” of “the [banking] sector as a whole.” The Archbishop described the amendment as a rational extension to existing provisions. He stated that it would reinforce a change of culture and act as a permanent reminder to the banking industry of the danger of slipping back into previous norms of behaviour. The Government argued against the amendment, having previously rejected the Commission’s recommendation in its First Report. The amendment was subsequently withdrawn. 

Archbishop of CanterburyThe Archbishop of Canterbury: My Lords, I apologise that I, too, was not here for Second Reading as I was at the funeral of a close friend. I speak as a member of the PCBS [Parliamentary Commission on Banking Standards], having had the privilege of a year of lessons from the other members, especially noble Lords here today, and the great pleasure of being rung up by the noble Lord, Lawson, quite frequently at weekends, to explain how I should think about a particular subject, which he has done with great eloquence as well today.

I agree entirely with the speeches made by the noble Lord, Lord Turnbull, twice, and both speeches by the noble Lord, Lord Lawson, which have put the position very clearly. It must be a very long time—and my experience of this House is very limited—since a solution to a major problem was put forward with such a noticeable lack of enthusiasm. Almost everyone who has spoken about the ring-fence has damned it with faint praise, to put it at its most polite. The noble Baroness, Lady Cohen, simply eliminated it quite quickly and very clearly. We are in danger of getting lost in looking at the regulation and forgetting what the regulation is trying to do. This is about a question of a culture and ethics, not detailed rules. We all remember Bob Diamond, the chief executive of Barclays, saying that culture is what happens when no one is looking. Continue reading “Archbishop of Canterbury supports “second reserve power” amendment to Banking Reform Bill”