Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what progress has been made in implementing the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 and FCA guidance with regard to politically exposed persons.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Money Laundering and Terrorist Financing (Amendment) Regulations 2023 came into force on 10 January 2024. All businesses within scope of the Money Laundering Regulations are now required to ensure that their starting point for assessing the risk posed by domestic politically exposed persons (PEPs), and the extent of the enhanced customer due diligence measures to be applied in relation to that customer, is that they present a lower level of risk than a non-domestic PEP.
The Government has been working closely with the FCA to follow up on the findings of its review into the treatment of Politically Exposed Persons (PEPs by financial institutions) and to ensure firms improve their practices where necessary. The FCA is in the process of updating its guidance on PEPs to reflect the findings of its review and the changes made by The Money Laundering and Terrorist Financing (Amendment) Regulations 2023. The FCA’s revised guidance will be published in due course.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether public money grants to bodies such as ParkRun are conditional on them adhering to the Public Sector Equality Duty; and whether particular funds to promote women’s activity rates then collect monitoring data by biological sex.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Public Sector Equality Duty (PSED) is a statutory duty set out in section 149 of the Equality Act 2010, which applies to public authorities and other bodies who exercise public functions.
The monitoring and reporting criteria for funding programmes is determined by the awarding body based on an overall assessment of the fund objectives. If the funded organisation is a public authority or a body that exercises a public function, then that organisation will be legally obliged to comply with the PSED as a result of section 149 of the Equality Act 2010.
Parkrun does not provide participation data by sex or gender to Sport England.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they expect new guidance on the treatment of politically exposed persons to be implemented.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Financial Conduct Authority is currently consulting on changes to its guidance on the treatment of politically exposed persons (PEPs) for anti-money laundering purposes, following a review of the treatment of domestic PEPs by financial institutions. The consultation closes on 18 October 2024. The FCA expects that the revised guidance will be published and brought into effect in the first half of 2025.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is their estimate of the number of pre-paid funeral plan customers who lost the money they had invested prior to the sector becoming fully regulated by the Financial Conduct Authority in July 2022.
Answered by Baroness Vere of Norbiton
The government recognises the difficulty and challenges facing those who have lost money because their funeral plan providers have been shown to be unable to fulfil the promises they made to their customers.
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation.
The two largest providers that have gone into administration since the government legislated are Safe Hands, with approximately 46,000 customers and One Life, with approximately 14,000 customers. We also understand that some smaller providers have entered administration.
During a wide-ranging meeting with industry in July 2017 to discuss pre-paid funeral plans, some concerns about Safe Hands funeral plans were raised with HM Treasury.
In response, officials advised that such concerns should be reported to the FCA, reflecting the fact that HM Treasury has no investigatory or enforcement powers of its own.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what action they took in respect of Safe Hands Funeral Plans following concerns raised in 2017 by Fairer Finance and the Funeral Planning Authority.
Answered by Baroness Vere of Norbiton
The government recognises the difficulty and challenges facing those who have lost money because their funeral plan providers have been shown to be unable to fulfil the promises they made to their customers.
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation.
The two largest providers that have gone into administration since the government legislated are Safe Hands, with approximately 46,000 customers and One Life, with approximately 14,000 customers. We also understand that some smaller providers have entered administration.
During a wide-ranging meeting with industry in July 2017 to discuss pre-paid funeral plans, some concerns about Safe Hands funeral plans were raised with HM Treasury.
In response, officials advised that such concerns should be reported to the FCA, reflecting the fact that HM Treasury has no investigatory or enforcement powers of its own.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of (1) ONS data showing an increase in the relative affordability of alcohol compared to fruit juice, and (2) the implications of this trend for their planned duty freeze on alcoholic drinks.
Answered by Baroness Penn
The Government will continue to assess the impact of its decisions on alcohol duties, including the duty freeze until 1 August 2023, and aims to balance its public health objectives with support for businesses.
The alcohol duty reforms will tax all alcohol according to strength for the first time from 1 August 2023. This will make low cost high ABV drinks, such as white ciders, more expensive and reduce the affordability of drinks more associated with alcohol harm.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they have taken to ensure that the (1) definition, and (2) scope, of actuarial activities to be subject to proposed statutory regulation by the Auditing, Reporting and Governance Authority (ARGA) does not lead to regulatory duplication and regulatory arbitrage.
Answered by Baroness Penn
HM Government consulted publicly on its proposals to reform the regulation of the actuarial profession in chapter 11.2 of its White Paper ‘Restoring trust in audit and corporate governance’. As part of the consultation process, the Government has held discussions with a range of actuarial stakeholders.
The Government is considering the responses to its consultation and will respond in due course.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether a separate assessment has been made of the (1) proportionality, and (2) cost, of proposed reforms to actuarial regulation, distinct from the audit profession, in the transition from the Financial Reporting Council (FRC) to the Auditing, Reporting and Governance Authority (ARGA).
Answered by Baroness Penn
HM Government consulted publicly on its proposals to reform the regulation of the actuarial profession in chapter 11.2 of its White Paper ‘Restoring trust in audit and corporate governance’. As part of the consultation process, the Government has held discussions with a range of actuarial stakeholders.
The Government is considering the responses to its consultation and will respond in due course.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they have had with stakeholders to ensure the future governance of the proposed model for the Auditing, Reporting and Governance Authority (ARGA) takes account of the distinctness of the actuarial professional from the audit and accountancy profession.
Answered by Baroness Penn
HM Government consulted publicly on its proposals to reform the regulation of the actuarial profession in chapter 11.2 of its White Paper ‘Restoring trust in audit and corporate governance’. As part of the consultation process, the Government has held discussions with a range of actuarial stakeholders.
The Government is considering the responses to its consultation and will respond in due course.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they will publish their proposals to reform the regulation of the actuarial profession.
Answered by Baroness Penn
HM Government consulted publicly on its proposals to reform the regulation of the actuarial profession in chapter 11.2 of its White Paper ‘Restoring trust in audit and corporate governance’. As part of the consultation process, the Government has held discussions with a range of actuarial stakeholders.
The Government is considering the responses to its consultation and will respond in due course.