Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps UK regulatory agencies are taking in response to (a) the bankruptcy of German Property Group (formerly Dolphin Capital and Dolphin Trust) and (b) its effect on UK-based investors.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK regulatory agencies are aware of the bankruptcy of German Property Group (GPG), formerly known as Dolphin Trust, and the effect on UK-based investors.
The Financial Conduct Authority (FCA) has published a joint statement with the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service. The statement sets out what UK consumers should do if they invested in GPG via an FCA authorised firm – either a financial adviser firm or a Self Invested Personal Pensions (SIPPs) operator – and they believe they were mis-sold. This includes how to complain to the Ombudsman service or submit a claim to the FSCS. The statement can be accessed on the FCA’s website (https://www.fca.org.uk/news/statements/gpg-companies-preliminary-bankruptcy-proceedings).
Companies under the German Property Group are incorporated in Germany and have never been authorised by the FCA. However, consumers should be assured that the FCA is working closely with all relevant external stakeholders on this matter and will share any further updates as and when possible.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to ask regulatory agencies to make an assessment of the implications for his policies of UK-regulated financial advisors promoting, recommending and offering investment in German Property Group (formerly Dolphin Capital and Dolphin Trust).
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK regulatory agencies are aware of the bankruptcy of German Property Group (GPG), formerly known as Dolphin Trust, and the effect on UK-based investors.
The Financial Conduct Authority (FCA) has published a joint statement with the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service. The statement sets out what UK consumers should do if they invested in GPG via an FCA authorised firm – either a financial adviser firm or a Self Invested Personal Pensions (SIPPs) operator – and they believe they were mis-sold. This includes how to complain to the Ombudsman service or submit a claim to the FSCS. The statement can be accessed on the FCA’s website (https://www.fca.org.uk/news/statements/gpg-companies-preliminary-bankruptcy-proceedings).
Companies under the German Property Group are incorporated in Germany and have never been authorised by the FCA. However, consumers should be assured that the FCA is working closely with all relevant external stakeholders on this matter and will share any further updates as and when possible.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations his Department (a) has made and (b) plans to make to the Government of Germany on the oversight of BaFin.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury Ministers and Officials regularly speak with their counterparts in Germany. The UK and Germany share high standards of prudential regulation and work together to promote these internationally through fora such as the Financial Stability Board and the Basel Committee for Banking Supervision. Oversight of BaFin is the responsibility of the Government of Germany.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to make an assessment of the potential merits of introducing additional provisions on (a) the due diligence required of financial intermediaries prior to making recommendations to investors and (b) public disclosure of the fees paid to intermediaries.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury works closely with the Financial Conduct Authority (FCA) to ensure that the financial advice market works well, competitively and fairly for firms and consumers. As the regulator, the FCA expect financial advisers to understand their client’s knowledge and experience of the transaction being considered, to be fully aware of their clients’ financial situation, and to fully appreciate what the client is trying to achieve.
Financial advisers must disclose their charges to customers prior to any transaction, using a price list or tariff, confirming the specific amounts they will be charged, so customers understand what service they are paying for at what price. In the area of defined benefit (DB) pensions transfer advice, new rules came into effect on 1 October 2020 to ensure that costs and charges are clearly disclosed, and that charges are not contingent on a positive recommendation to transfer. This removes any incentives for an advice firm to act in their own interests, rather than their client’s, and places a value on professional advice, regardless of whether it results in a transaction.
In December 2020, HM Treasury and the FCA published an evaluation of the Retail Distribution Review and the Financial Advice Market Review to understand how the market has evolved since these reviews were undertaken, and to establish what the key remaining policy challenges are. The FCA also launched a “Call for Input: Consumer Investments” last year which looks across the whole investment market and considers systemic issues which may need to be fixed. The FCA are now considering responses.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential merits of enabling information from the 2019-20 financial year tax return only to be used for eligibility for the Self-employment Income Support Scheme in (a) the hospitality sector and (b) other sectors of the economy that are unable to reopen in a timely manner as the covid-19 restrictions are eased.
Answered by Jesse Norman
There would be significant risks for the public purse if the Government relied on 2019-20 returns for the SEISS, as this would create an opportunity for fraudulent activity through the manipulation of trading profit figures. The Government cannot expose the tax system to these risks.
The Self-Employment Income Support Scheme (SEISS) continues to be one of the most generous self-employed COVID-19 support schemes in the world as the economy reopens.
The SEISS is one element of the unprecedented financial support provided by the Government. This support includes Bounce Back loans, tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and other business support grants.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to support people who are examiners and have lost income due the cancellation of GCSE and A-level examinations due to the covid-19 outbreak.
Answered by Jesse Norman
The Government has launched an unprecedented package to protect people’s incomes affected by COVID-19 including the Coronavirus Job Retention Scheme for employees and support for the self-employed. Examination boards are independent organisations. As such, they are responsible for deciding on payment arrangements and discussing with HMRC as appropriate. The situation is complex, as the employment status of examiners varies, but the Government is aware that examination boards are providing information and updates to those affected.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance he had issued to HMRC on the (a) eligibility for and (b) operation of the Time To Pay service during the covid-19 outbreak.
Answered by Jesse Norman
HMRC are delivering an enhanced Time to Pay offer to fit the specific impacts of Covid-19. Time to Pay is available to all firms and individuals who are in temporary financial distress as a result of Covid-19 and are unable to pay their tax on time or have existing liabilities. The bespoke arrangement, which is agreed depending on circumstances, can cover all debts owed to HMRC. Taxpayers may be able to defer payments for as long as they need if they are unable to make a payment immediately. To this end, HMRC have set up a dedicated Covid-19 helpline to enable those eligible to get practical help and advice. This can be reached by calling: 0800 0159 559. HMRC will keep all operations under constant review as the situation develops.
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information he holds on the number of people who have taken up a Help to Buy ISA in the North East Bedfordshire constituency.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The information requested is not available.
HM Treasury releases Help to Buy: ISA data on a quarterly basis and have made this information available in the latest quarterly statistics publication which was released on 27 February 2020. This publication is available here:
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many tax avoidance cases HM Revenue and Customs has litigated in each of the last five years; and in how many of these it was successful.
Answered by Jane Ellison
The number of tax avoidance litigation cases is published by HM Revenue and Customs in the Tax Assurance Commissioner’s annual report at:
www.gov.uk/government/collections/how-we-resolve-tax-disputes
Asked by: Richard Fuller (Conservative - North East Bedfordshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many tax avoidance cases HM Revenue and Customs (HMRC) has settled prior to litigation in each of the last five years; and how many of those cases were settled (a) wholly or (b) in part in HMRC's favour.
Answered by Jane Ellison
HM Revenue and Customs settles thousands of enquiries every year, including enquiries into tax avoidance, in line with the Litigation and Settlement Strategy. This is available at: https://www.gov.uk/government/publications/litigation-and-settlement-strategy-lss.
Detailed records of avoidance cases taken to litigation are maintained, however, not in a format that enables the information requested to be provided.