Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department's decision not to gold-plate the Payment Services Regulations by increasing transparency in foreign exchange pricing is consistent with the Government's stated approach to gold-plating; and if he will make a statement.
Answered by Steve Barclay
The decision not to increase transparency in foreign exchange pricing is consistent with the Government’s approach to transposing other EU Directives, which is not to gold-plate and go beyond the requirements of the Directive wherever possible.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Government response to the consultation on the Payment Services Regulations, what steps his Department will take to (a) bear in mind the disclosure requirements listed in recital 84 of the Payment Services Directive and (b) achieve greater transparency.
Answered by Steve Barclay
The Government did not include a requirement in the Payment Services Regulations 2017 (PSRs) for increased transparency as it had to weigh up the potential benefits of doing so against other issues, such as the Government’s approach to implementing maximum harmonising Directives. The Government encourages all firms to bear in mind the recitals of the second Payment Services Directive and operate within the spirit of the Directive.
The Financial Conduct Authority (FCA) is the regulatory body responsible for enforcing the PSRs. As part of ensuring that firms comply with the specific requirements of the Regulations, the Government is extending the FCA's rule-making powers to allow them to, among other things, make rules on financial promotions for payment institutions and e-money institutions.
On 19 July 2017 the FCA clarified concerns it has about some firms' misleading use of currency converter tools in relation to their currency transfer services. It announced plans to consult on making new rules within this market using the extended powers.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to publish the results of the research on foreign exchange; whether those results will be published with the Government response to that consultation; whether he plans to use those results to inform amendments to the draft Payment Services Regulations 2017; and if he will make a statement.
Answered by Steve Barclay
The Government does not intend to publish the research it conducted earlier in the year on the effects of transparency in overseas money transfers (involving foreign exchange) on consumer decisions at this point in time as it relates to the formulation and development of ongoing government policy.
However, the research will help to inform the Government’s response to its consultation on the implementation of the second Payment Services Directive, which will be published shortly. The Government will need to weigh up the benefits of requiring greater transparency with other considerations, such as the Government’s approach to implementing maximum harmonising Directives.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Answer of 18 April 2017 to Question 69488, if he will place in the Library the results of the research commissioned by his Department on the effect of current pricing structures used by foreign exchange providers on consumer value choices.
Answered by Steve Barclay
In its Answer of 18 April 2017 to Question 69488, the Government stated that it was conducting research on the effects of transparency in overseas money transfers (involving foreign exchange), on consumer decisions. This research will help to inform the Government's response to the consultation on draft regulations for the implementation of the Second Payment Services Directive. This response will be published shortly.