Financial Services and Markets Bill [HL]

Debate between Lord Holmes of Richmond and Lord Stockwood

Committee stage
Wednesday 1st July 2026 Grand Committee

[Lord Holmes of Richmond (Con)]

I would like some clarification from the Minister. Does he have, at his fingertips, figures around the stop the clock function? Are the Government currently satisfied with how the function is being used?

[Lord Stockwood (Lab)]

Let me come back to the noble Lord with that data; I had it in the original draft, but it seems that we have passed it out. I will write to the noble Lord over the coming days.

Our belief is that the right answer is not to hardwire this procedural restriction into primary legislation but to continue improving operational performance and scrutiny of timelines through our wider framework.

Amendment 108 would insert detailed operational requirements into FSMA for the handling of authorisation applications. I recognise the attraction of measurable standards on case allocation, initial review, information requests, publication of monitoring data and limiting the use of the stop the clock mechanism. However, as we discussed earlier, the FSMA model delegates certain responsibilities to the independent regulators and, like any other organisation, they need to figure out how to fulfil those responsibilities. They are responsible for ensuring that they have the resources, systems and processes needed to discharge their functions effectively. The right approach for Parliament and the Government is to hold the regulators to account for speed, service quality and operational effectiveness, not to prescribe in primarily legislation the detailed mechanics of how an application must be processed.

I have been passed the data that was in the original speech, which answers the question from the noble Lord, Lord Holmes. In the year 2025-26, in 55% of FCA solo-regulated senior management applications there was no stop the clock and for 32% of cases the clock was stopped only once. Even when the FCA does use its stop the clock power, it continues to determine applications promptly. In Q4 of 2025-26, 50% of senior manager cases were determined within 19 days. As mentioned previously, 99% were determined within the new target of two months.

[Lord Holmes of Richmond (Con)]

I thank the Minister for those statistics and very much appreciate him having them in front of him. This ability to elucidate such detail is incredibly helpful. He set out the importance of enabling the regulator to continue to have the option to increase timelines, rather than just having them set as they are or being able to reduce them, as our amendments suggest. Would he be able to set out to the Grand Committee perhaps four or five examples of where it would be helpful for the regulator to increase timelines?

[Lord Stockwood (Lab)]

I understand that the regulator does not have the power to increase deadlines without our consent.

Financial Services and Markets Bill [HL]

Debate between Lord Holmes of Richmond and Lord Stockwood

Committee stage
Monday 29th June 2026 Grand Committee

[Lord Stockwood (Lab)]

It goes without saying that there are many things on which I do not agree with the Labour Government of 2006, but we will leave that for another day. We believe that this is already covered. I do not want to allow the noble Baroness’s expertise to be undermined by my relative inexpertise, so let me come back in writing on that. The advice I am getting is that we believe that it is already covered, but let me come back in writing before our meeting next week.

[Lord Holmes of Richmond (Con)]

I paused there in case somebody else wanted to make another point—I did not want to jump in. I thank all noble Lords who participated in this excellent, informed and important debate. I would never seek to offer a Minister of the Crown advice, but, having said that, when the noble Baronesses, Lady Bowles and Lady Noakes, speak on these matters, it is worth paying attention, reflecting, reading Hansard and reflecting again.

I thank the noble Baroness, Lady Noakes, for all the work she has done as chair of the FSR committee. It has produced excellent reports that always cut to the heart of an issue. At a time when, as she rightly identifies, more and more is coming before Parliament as regulation which, on the Floor of the House, we have so little role in which to play or influence to bring to bear, the role of her committee is even more significant and important.

My noble friend Lady Neville-Rolfe summed up with her usual brevity and precision. This is all about proportionality and common sense. The only tiny addition I would bring to that is specificity. In essence, all the amendments in this group have been tabled for the same reason that we debated these subjects on previous committee days. Strategies and frameworks are important, but events do not happen in strategies and frameworks. Events happen: they impact individuals and businesses, particularly small businesses, minute by minute, hour by hour—or, to quote a phrase apropos of nothing in particular, events happen on a day-to-day basis. All the amendments in this group are significant and worthy of reflection.

In conclusion, I apologise profusely to the noble Baroness, Lady Kramer, for causing her to feel queasy. I can only hope that my financial inclusion amendment in the next group can act as an effective antiemetic. For now, I thank all noble Lords who participated in this important debate and beg leave to withdraw Amendment 81.

Financial Services and Markets Bill [HL]

Debate between Lord Holmes of Richmond and Lord Stockwood

Committee stage
Wednesday 24th June 2026 Grand Committee

[Lord Stockwood (Lab)]

To come back on that, we have heard the criticism of the FCA loud and clear. The intention is for further debates to come back to what we believe is the current state of oversight and governance, and we are open to the conversations that the debates will lead to.

[Lord Holmes of Richmond (Con)]

I thank all noble Lords who have taken part in this important debate. One of the key themes that ran through it and the Minister’s response is the question of clarity, or the lack thereof. Certainly, as a consequence of these changes as currently drafted, there is less clarity on payment systems regulation and on how the competition and innovation requirements will be satisfied in a broader context. I fully support the comments of the noble Lord, Lord Vaux, on his amendments, and I will come to the important amendment of the noble Baroness, Lady Bowles.

I am disappointed that the Minister did not take the opportunity to offer a consultation about consultations. The reality is that the Minister could take this opportunity to bring clarity to increasing and varying levels of opacity and unnecessary levels of control in the hands of the regulator, where they currently exist. We have seen this in financial services in recent Bills that we have considered; it goes beyond financial services to this sense of leaving regulators with greater powers as a consequence of significant statutes passed, as opposed to Parliament debating and determining these decisions, which in no sense would tie the regulators’ hands. In fact, the amendment of the noble Baroness, Lady Bowles, would assist the regulators, because it would bring clarity on how to operate these consultations. There is a significant issue with consultations in financial services, and a significant issue with government consultations across the piece. It is not a party-political point; it has been the case for years. This is an opportunity to bring clarity to this and enable more firms, more individuals and more perspectives to be brought into what would then be better consultations and better outcomes as a result of that consultation process. I very much look forward to the noble Baroness, Lady Bowles, bringing her amendment back on Report. It is strong; it would not let too many cats out of too many bags—even though I stand with a Labrador at my feet—and I do not think that this will be the last we see of a number of these amendments. For now, I beg leave to withdraw my amendment.