All 3 Debates between John Glen and Neil Gray

Tue 24th Apr 2018
Financial Guidance and Claims Bill [Lords]
Commons Chamber

3rd reading: House of Commons & Report: 3rd sitting: House of Commons
Wed 14th Mar 2018

Draft Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018

Debate between John Glen and Neil Gray
Monday 19th November 2018

(6 years, 1 month ago)

General Committees
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John Glen Portrait John Glen
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I will move on to that in a moment. I also want to touch on the point about the ICO as an enforcer, and why not the FCA. There are two debates here. The hon. Member for Garston and Halewood asked about the FCA’s suitability. One issue that has come up—my hon. Friend the Member for South Norfolk mentioned it as well—is the ICO’s experience and powers to enforce the restrictions on CMC cold calling. The ICO can levy fines of up to £500,000 for breaches of the Privacy and Electronic Communications (EC Directive) Regulations 2003. It has the international reach to enable enforcement action when companies are operating abroad, and perhaps calling my hon. Friend.

The ICO and the FCA work together to establish whether the claims management company has FCA authorisation to carry out marketing activity. The FCA will be able to consider whether the CMC is in breach of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and will sanction appropriately. It is really about the concentration of the FCA’s skills and experience in this domain.

Neil Gray Portrait Neil Gray
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I thank the Minister for explaining where the Government are trying to move to in terms of CMC cold calling, which was a hot topic of debate during the passage of the Financial Guidance and Claims Act 2018. What he has described does not go as far as banning CMC cold calling, although he has banned it for pensions. Why is he not banning it? That is what we are getting plagued with. The hon. Member for South Norfolk and many others will be in the same position as me.

John Glen Portrait John Glen
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The Government believe that claims management companies fuel speculative claims for redress, that consumers struggle to understand the services that they offer, that there is a lack of transparency around how they operate, and that they offer poor value for money.

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John Glen Portrait John Glen
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I entirely agree. That is the purpose of the draft order, which will enable claims management regulation to be transferred to the FCA and the Financial Ombudsman Service. Given the breadth of their existing regulatory oversight, that will satisfy the concerns of those who want a more robust regulatory regime in place. Consumers will benefit from a well-regulated and professional claims management industry. The industry can provide important services to some consumers, but there needs to be confidence in how difficulties are handled.

Neil Gray Portrait Neil Gray
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I do not believe that the Minister has adequately addressed the point raised about the five-year wait for monitoring. He says that he is accountable to the House. Of course he is, but it would be far more useful if he could lay progress reports before the House and have more frequent voluntary reviews to allow proper scrutiny of progress.

John Glen Portrait John Glen
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My view is that there are clear categories that the Government have been challenged on with respect to inclusion. There was a judgment to be made about what was to be included in the order at this point in time, but I would seek to make regular reports to review progress—far more frequently than every five years, which is the formal requirement. It would certainly be within the FCA’s remit to introduce changes far more regularly; if the hon. Gentleman reflects on the FCA’s work on high-cost credit, he will agree that its interventions have led to more rapid changes. My expectation is that the regulator will respond to market changes and consider the appropriateness of extending to additional categories.

I hope that the Committee has found this evening’s sitting informative and will support the order.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018.

Financial Guidance and Claims Bill [Lords]

Debate between John Glen and Neil Gray
3rd reading: House of Commons & Report: 3rd sitting: House of Commons
Tuesday 24th April 2018

(6 years, 7 months ago)

Commons Chamber
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John Glen Portrait John Glen
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It is a great pleasure finally—for the third time of asking, I believe—to have the opportunity to start the Bill’s Report stage. I want to make a positive start to proceedings by covering new clauses 4 and 9, which will allow us to protect consumers from harmful cold calls by enabling us to lay before the House regulations to ban pensions cold calling and introduce bans for other forms of cold calling, if we consider it appropriate to do so.

As I have said previously, I want to ban pensions cold calling as soon as possible, given the profoundly damaging impact that pension scams can have on people’s lives. I have listened to the recommendations of the Work and Pensions Committee, which published a report before the turn of the year on preventing pension scams, as well as to the passionate calls that have been made across the House and in the other place to ban pensions cold calling. I am pleased to present new clause 9, which builds on and improves the clause proposed by the Committee. The Government’s new clause has a wide scope, which means that we can ban all pensions-related calls. Crucially, we do not need to wait for advice from the guidance body before we implement a ban, so we can make good on our commitment to ban pensions cold calling quickly. I hope that the fact that I will have to lay a statement before both Houses if we have not laid regulations before Parliament by June will reassure hon. Members on that point.

I turn to new clause 4. It is clear to me that, too often, significant consumer detriment arises because of cold calling. If we find evidence that people are experiencing detriment as a result of cold calling regarding consumer financial products, we will not hesitate to use this power to protect consumers.

I am pleased to be able to confirm the final part of our approach to protect consumers from cold calling by means of amendment 10. The amendment expands and improves on the consumer protection function. It gives the body powers to publish regular assessments of consumer detriment resulting from cold calling, and to advise the Secretary of State on where further bans should be implemented. The change clarifies the consumer protection function and gives the body a clear mandate to support the Government in preventing harm that results from cold calling. In fact, the Bill has been agenda-setting in relation to cold calling. The amendments that we are discussing will give the Government new powers to ban cold calling in some of the areas that are the most pressing when it comes to protecting consumers.

Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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I thank the Minister for giving way and commend him for the action that he has taken—I am very supportive of it. He has made a good case for banning cold calling in the pensions industry and some other financial industries. The clear case for doing so has been well made, but why will the Government not go further and ban cold calling outright?

John Glen Portrait John Glen
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I have tried to make it clear that when we are setting up a new body, it is important that we take time to reflect on the evidence and that we take action in consultation with and alongside that body. I acknowledge the widespread concern that exists in other areas, and I think that the action we are taking gets the balance right when it comes to getting the evidence together and moving as quickly as possible when the case has been made.

The amendments that I have outlined are additional to the amendment that was made in Committee to introduce a ban on claims management cold calling, which will cover calls about claims on matters ranging from mis-sold payment protection insurance to holiday sickness and car accidents. That means that calls about PPI, whether we have been in a car accident or whether we were sick on holiday—we are all familiar with such calls—will be banned unless prior consent has been given to receiving them.

Having ensured that we can tackle cold calling effectively, we plan to remove the existing clause 4 by means of amendment 11. Amendments 12, 25, 26, 28, 29, 45 and 46 are minor and consequential to these changes. In particular, amendment 45 commences new clause 9 on Royal Assent to ensure that there is no unnecessary delay in making regulations, and amendments 44, 47 and 48 prepare the Bill for the new data protection legislation.

Banking in North Ayrshire

Debate between John Glen and Neil Gray
Wednesday 14th March 2018

(6 years, 9 months ago)

Commons Chamber
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Neil Gray Portrait Neil Gray
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Will the Minister give way?

John Glen Portrait John Glen
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No, I am not going to give way because I have only eight and a half minutes, and I want to do justice to all the points that have been raised.

This Government are very aware of the issues. I will talk about the challenges facing the banking sector and our communities. I think that the hon. Lady has said in a previous debate that she does not bank online, and that is her choice, but whatever our personal preferences, banking is going through a period of unprecedented technological change and consumer behaviour is changing significantly. Banks are having to adapt to those shifting patterns of behaviour. The decisions that they are making are sometimes not popular and I understand why, but the hon. Lady will be well aware that those decisions are not for the Government.

The hon. Lady made a point about the former Chancellor, the former Member for Tatton, signing off on the chief executive post. There is a big difference between signing off on strategic leadership and getting involved in day-to-day commercial decisions.

Brendan O'Hara Portrait Brendan O’Hara
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Will the Minister give way?

Neil Gray Portrait Neil Gray
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Will the Minister give way?

John Glen Portrait John Glen
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I am not going to give way; I am just going to continue.

Each bank’s branch strategy, including whether to open or close individual branches, is for the management of that bank to determine. I understand that that is frustrating. It is frustrating to all of us who face this issue. The Government rightly do not intervene in these commercial decisions, nor do the Government manage the RBS Group. RBS is headed by its own board, which is responsible for strategic direction and management decisions. All businesses strive to deliver for their customers, but they also need to be able to plan for the future and to make changes where they are needed. These are complex commercial decisions. RBS has made its decisions in line with its commercial strategy.

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John Glen Portrait John Glen
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No.

I encourage the hon. Lady—and her colleagues—to talk to the board if she has concerns about the steps that RBS is taking, or not taking, in her constituency. The access to banking standard is the practical way to shape a bank’s approach to local areas. I encourage all Members in all parts of the House to ensure that their community is aware and able to engage with the bank directly.

Several Members have mentioned access to cash. The Government continue to work with industry to ensure the provision of widespread free access to cash. In December, LINK, the organisation that runs the ATM network in the UK, committed to protecting all free-to-use ATMs that are 1 km or more away from the next or nearest free-to-use ATM. This is a welcome strengthening of its financial inclusion programme, and one that I hope will reassure members across the House.

The hon. Lady fights hard for her constituents in North Ayrshire, as do a number of other Members who have spoken, and I am sure that their concerns have been heard. We all understand the frustration and disappointment caused by bank closures, but these are not Government decisions. The Government’s policy remains clear: RBS is responsible for these decisions, and RBS must defend them.

Neil Gray Portrait Neil Gray
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Will the Minister give way on that point?

John Glen Portrait John Glen
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No.

Banking is changing rapidly—we cannot deny that reality—but the Government believe that banks must support communities across the UK when their local branches close. That is a dialogue that we are all deeply engaged with in trying to find the best solution for communities. In this place, we can help to draw attention to these issues and work constructively to help our constituents to access the services they need. For my part, I will keep pushing for everyone to be able to access the banking services they need, wherever they live.

Question put and agreed to.