Oral Answers to Questions
Debate between John Glen and Joanna Cherry(4 years ago)
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Joanna Cherry (Edinburgh South West) (SNP)
If the Government will take steps to ensure that victims of the Equitable Life scandal receive full compensation for their losses. [907761]
The Economic Secretary to the Treasury (John Glen)
In 2010, the Government set up a payment scheme to make payments of up to £1.5 billion to eligible policyholders. Since the scheme closed in 2016, the Government’s position on this issue has been clear: there is no further funding in addition to that £1.5 billion and this issue is considered closed.
Joanna Cherry [V]
Many self-employed people and small business owners feel let down by the covid response, and the same type of people were let down 10 years ago today when victims of the Equitable Life scandal were told they would only get 22% of the money they had lost. The Treasury has ignored hard-working people like my constituents for a decade, so please will the Chancellor reconsider and commit to providing Equitable Life victims with the compensation they deserve?
John Glen
The Government continue to pay out to annuitants who were in payment from 2010. Indeed, we have a £100 million contingency to ensure that they are properly provided for. The Government were completely transparent about the calculation methodology and worked with the action group, the Equitable Members Action Group, to give explanations to policyholders. We met actuaries to ensure that it was as fair as it possibly could be, so the Government’s position on this remains as I have stated.
Clydesdale Bank and SMEs
Debate between John Glen and Joanna Cherry(5 years, 7 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
John Glen
I recognise that we need in the Financial Conduct Authority and the PRA regulators that are able to take appropriate action in a timely way to deal with disputes where they have responsibility. I have regular conversations with the FCA and encourage it to look at different matters. I will obviously be concerned about how the expanded ombudsman service and the redress mechanism work, and nothing is ruled out in the future.
Joanna Cherry (Edinburgh South West) (SNP)
I congratulate my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) on securing this important urgent question. Like many Members, I have constituents whose businesses were successful and would not have gone under had the banks not mistreated them. Does the Minister agree that the FCA should issue strict guidance that the banks should not destroy any documentation relative to ongoing disputes before the historical compensation scheme is established, and if they do so, they should be sanctioned?
John Glen
The hon. and learned Lady makes a reasonable point. It would be perverse to shred relevant materials in the context of a provision that they have entered into freely, showing a lot of good will, to try to find resolution and get to a better point of trust between the public and themselves.
Banking Misconduct and the FCA
Debate between John Glen and Joanna Cherry(6 years, 6 months ago)
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John Glen
I am grateful for that intervention. I am happy to clarify that the letter has been copied to the chair of the APPG and the Chair of the Select Committee, and I will make it more widely available.
There are already a number of avenues for SMEs seeking a resolution when dealing with their bank. Our smallest businesses have the Financial Ombudsman Service. I am of course aware of the “Dispatches” programme, and I have met the chief executive. The FOS is reviewing its operations and addressing the matters raised.
Where there are widespread issues, the FCA can ensure, and has ensured, redress through industry-wide or firm-specific redress schemes. Of course, there is also the usual legal process open to business, although I know this can be a time-consuming and costly process.
Since the last debate, the FCA has published a consultation paper on expanding the remit of the Financial Ombudsman Service, which would widen eligibility to include a greater range of SMEs.
Joanna Cherry
On the point about legal redress, does the Minister not appreciate that a lot of our constituents have lost everything. If they are in Scotland, they might be lucky enough to still be eligible for legal aid, but many legal aid lawyers are not equipped to take on this sort of complex action, so this is a real David and Goliath situation. That is why we need the tribunal.