Financial Services (Banking Reform) Bill
Debate between Lord Lawson of Blaby and Lord Sharkey(10 years, 10 months ago)
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Lord Sharkey
My Lords, I have two simple questions. One is to do with the innovation objective. Government Amendment 60M states:
“The innovation objective is to promote the development of, and innovation in, payment systems”.
It just occurred to me to ask whether there is any example of a regulator successfully promoting innovation. I would be interested to hear the Minister’s reply to that.
Lord Sharkey
Government Amendment 60U is headed, “Power to require disposal of interest in payment system”. New subsection (2) states:
“The power conferred … may be exercised only if the Payment Systems Regulator is satisfied that, if the power is not exercised, there is likely to be a restriction or distortion of competition in—
(a) the market for payment systems, or
(b) a market for services provided by payment systems”.
How is that a remedy for anything? When it comes to divestment or disposal, is it the Government’s notion that someone will pick up the shares that have been disposed of; and, if so, who will it be? What would be the incentive for anyone to pick them up?