Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have, if any, to introduce a statutory duty of care for consumers.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibit traders from engaging in unfair commercial practices towards consumers. The CPRs already prohibit practices that contravene the requirements of professional diligence, which is defined as the standard of special skill and care that a trader may reasonably be expected to exercise towards consumers, commensurate with either honest market practice or the general principle of good faith.
The Financial Services Act 2021 required the Financial Conduct Authority (FCA) to consult on whether it should make rules giving regulated financial services providers a duty of care over their customers. This was in response to concerns from Parliamentarians and others, who wanted to reduce levels of consumer harm in financial services.
The FCA published a final Policy Statement on its new Consumer Duty on 27 July 2022, following two consultations in May and December 2021.
The FCA has set out its views on how the Consumer Duty satisfies the requirement for it to consult on the introduction of a duty of care for financial services firms, and why the Consumer Duty amounts to a duty of care.
The FCA, as an operationally independent regulator, is responsible for implementing and enforcing its Consumer Duty rules. It would not be appropriate for the government to comment on the specific rules introduced by the FCA.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of whether the new Consumer Duty set out by the Financial Conduct Authority in their policy statement PS22, published on 9 July, will be effective.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibit traders from engaging in unfair commercial practices towards consumers. The CPRs already prohibit practices that contravene the requirements of professional diligence, which is defined as the standard of special skill and care that a trader may reasonably be expected to exercise towards consumers, commensurate with either honest market practice or the general principle of good faith.
The Financial Services Act 2021 required the Financial Conduct Authority (FCA) to consult on whether it should make rules giving regulated financial services providers a duty of care over their customers. This was in response to concerns from Parliamentarians and others, who wanted to reduce levels of consumer harm in financial services.
The FCA published a final Policy Statement on its new Consumer Duty on 27 July 2022, following two consultations in May and December 2021.
The FCA has set out its views on how the Consumer Duty satisfies the requirement for it to consult on the introduction of a duty of care for financial services firms, and why the Consumer Duty amounts to a duty of care.
The FCA, as an operationally independent regulator, is responsible for implementing and enforcing its Consumer Duty rules. It would not be appropriate for the government to comment on the specific rules introduced by the FCA.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government whether they consider that the new Consumer Duty set out by the Financial Conduct Authority in their policy statement PS22, published on 9 July, is the same as a general duty of care; and if not, what the differences are.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibit traders from engaging in unfair commercial practices towards consumers. The CPRs already prohibit practices that contravene the requirements of professional diligence, which is defined as the standard of special skill and care that a trader may reasonably be expected to exercise towards consumers, commensurate with either honest market practice or the general principle of good faith.
The Financial Services Act 2021 required the Financial Conduct Authority (FCA) to consult on whether it should make rules giving regulated financial services providers a duty of care over their customers. This was in response to concerns from Parliamentarians and others, who wanted to reduce levels of consumer harm in financial services.
The FCA published a final Policy Statement on its new Consumer Duty on 27 July 2022, following two consultations in May and December 2021.
The FCA has set out its views on how the Consumer Duty satisfies the requirement for it to consult on the introduction of a duty of care for financial services firms, and why the Consumer Duty amounts to a duty of care.
The FCA, as an operationally independent regulator, is responsible for implementing and enforcing its Consumer Duty rules. It would not be appropriate for the government to comment on the specific rules introduced by the FCA.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government whether the UK Infrastructure Bank, as a private company wholly owned by HM Treasury, will be subject to the same rural proofing guidance as government departments.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The UK Infrastructure Bank has a dual mandate of supporting local and regional economic growth and tackling climate change, and it will support projects across the country. Its priority sectors include digital and clean energy infrastructure which may benefit rural areas in particular UKIB’s recently published Strategic Plan also notes that there are complex rural-urban disparities, and that infrastructure investment can help to address these.
The UK Infrastructure Bank is operationally independent from Government, and its remit is set out in its Framework Document, which asks it to:
“take into account, as far as practicable and appropriate with respect to the Company, the relevant Green Book guidance when appraising investment opportunities”.
Whist UKIB is not subject to specific rural proofing guidance, this requirement in the Framework Document includes considering place based impacts.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to subject conversions and repairs on existing buildings to zero-rated VAT in-line with the VAT regime for new builds.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government currently maintains a zero-rate of VAT on the construction of new build residential properties. This is to incentivise their construction and provide a lower burden of tax for purchasers of new homes.
Renovation and conversion costs are also eligible for the 5 per cent reduced rate of VAT, providing conditions are met. This includes conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two years or more prior to the renovation work.
Expanding these reliefs to include all conversions and repairs would cost approximately £3.75 billion per year and would require reductions in spending or increasing taxes elsewhere. While all taxes are kept under review, the Government has no plans to review the VAT treatment of conversions and repairs on existing buildings at this time.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they have had, if any, with the Crown Estate regarding its purchase of a property from a company linked to President Aliyev of Azerbaijan.
Answered by Lord Agnew of Oulton
Under the Crown Estate Act of 1961, The Crown Estate is operationally independent of government. Decisions regarding the sale and purchase of property are a matter for them.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they are taking to monitor fiat currency to cryptocurrency (1) deposits, and (2) withdrawals, to prevent cryptocurrencies from being used to (a) launder money, and (b) hide transactions in illicit markets.
Answered by Lord Agnew of Oulton
Since 10 January 2020, UK cryptoasset exchange providers and custodian wallet providers have been in scope of the UK’s Money Laundering and Terrorist Financing Regulations (MLRs) and Part 7 of the Proceeds of Crime Act 2002. This means that firms in the UK which exchange cryptoassets for fiat currency and vice versa are required to register with the UK’s Financial Conduct Authority (FCA), carry out appropriate checks on their customers, and monitor for and report suspicious activity. These can be analysed by the UK Financial Intelligence Unit and made available to law enforcement agencies to investigate and take action when appropriate.
The government has proposed to further extend the requirements placed on cryptoasset firms under the MLRs. HM Treasury recently consulted on the implementation of Recommendation 16 of the Financial Action Task Force (FATF) for transfers of cryptoassets.
Pending the outcome of the consultation, the implementation of this Recommendation would extend the information sharing and record keeping requirements that apply to bank transfers to transfers of cryptoassets, and thereby further assist in the prevention and detection of money laundering.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the report by Christians Against Poverty Shipshape or sinking ship?, published on 21 July, what plans they have to annually assess levels of financial wellbeing across the UK.
Answered by Lord Agnew of Oulton
The Government recognises that the full impact of COVID-19 on people’s personal finances is still unfolding, and that some are struggling with their finances during these challenging times. The Government is committed to helping people improve their financial wellbeing, and is working with stakeholders from the public, private and third sectors on these issues.
In 2020, the Money and Pensions Service (MaPS), an arms-length body of Government, published the UK Strategy for Financial Wellbeing, which sets out five goals to improve financial wellbeing in the UK by 2030. These include increasing the number of children and young people receiving a meaningful financial education, encouraging saving, decreasing the number of people often using credit for food and bills, increasing the number of people accessing debt advice, and helping people plan for later life. It also includes cross-cutting workstreams focusing on gender, mental health, and wellbeing in the workplace.
The Government also works closely with Fair4All Finance, an independent body which was founded in 2019 to improve the financial wellbeing of those who are financially vulnerable through fair and affordable financial products and services. Since 2019, the Government has provided £96 million of dormant asset funding towards financial inclusion, which are being distributed by Fair4All Finance.
The Government has close and regular engagement with the financial services regulators on issues which contribute to financial wellbeing. For example, in February 2021, the Financial Conduct Authority (FCA) published its finalised guidance for firms on the fair treatment of vulnerable customers. The Government is supportive of recent FCA work on vulnerable customers.
In addition, at Budget 2021, the government announced up to £3.8m for a pilot No-Interest Loans Scheme to support vulnerable consumers who would benefit from affordable credit to meet unexpected costs as an alternative to relying on high-cost credit.
Finally, the Government considers financial inclusion and capability as key determinants of financial wellbeing. The Government reports annually on progress made on financial inclusion through the Financial Inclusion Report. Furthermore, MaPS monitors levels of financial capability in the UK through the Financial Capability Survey, a nationally representative survey of adults living in the UK.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to assess the methodology used to calculate the money owed to Equitable Life policyholders as part of the compensation scheme established under the Equitable Life (Payments) Act 2010, and (2) the accuracy of the figures produced by that methodology.
Answered by Lord Agnew of Oulton
The methodology for calculating payments to Equitable Life policyholders was published in 2011.
The Equitable Life Payment Scheme closed to claims in 2015 and there are no plans to reopen the Payment Scheme or review the £1.5 billion funding allocation previously made to it.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask Her Majesty's Government what recent consideration they have given to ensuring that there is (1) compensation, and (2) support, available to those affected by the collapse of Equitable Life.
Answered by Lord Agnew of Oulton
The methodology for calculating payments to Equitable Life policyholders was published in 2011.
The Equitable Life Payment Scheme closed to claims in 2015 and there are no plans to reopen the Payment Scheme or review the £1.5 billion funding allocation previously made to it.