Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will amend the Financial Promotions Order to remove the exemption for self-certified sophisticated investors.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The financial promotion regime includes a number of targeted exemptions that are designed to reduce regulatory burdens, including for small and medium-sized enterprises (SMEs) seeking to raise capital through sophisticated private investors.
The previous government brought forward proposals to amend the exemptions for self-certified sophisticated investors and high-net-worth individuals, which came into effect in January 2024. Those reforms aimed to strike a balance between increasing consumer protection and preserving the ability of SMEs to raise capital.
However, following significant concerns having been raised about the impact of these changes on SMEs raising capital, the previous Chancellor announced at Spring Budget 2024 that the government would legislate to reinstate the previous eligibility criteria. Those changes came into effect on 27 March 2024.
The Government has no plans to remove the exemption for self-certified sophisticated investors.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with the Secretary of State for Environment, Food and Rural Affairs on the potential merits of reversing recent changes to agricultural property relief and business property relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Treasury Ministers discuss a range of subjects with Ministers from other departments, including the Department for Environment, Food and Rural Affairs.
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department has taken through the (a) Financial Conduct Authority and (b) Payment Systems Regulator to establish the reasons for which banks have not engaged directly with investors in resolving authorised push payment reimbursement claims relating to investments made (i) before and (ii) after 7 October 2024; and what (A) findings, (B) correspondence and (C) further steps have resulted from this work.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.
All payment services providers, including banks, are required to comply with the Payment Systems Regulator’s authorised push payment (APP) scam reimbursement regime, which came into force on 7 October 2024. This requires firms to reimburse victims for qualifying APP scams which took place from 7 October 2024 and over the Faster Payments System up to the value of £85,000. For APP scams which took place before this, these may be eligible for reimbursement under the Contingent Reimbursement Model Code, which applied from May 2019 and was signed by the UK’s largest banks and building societies.
The 79th group are currently subject to an ongoing investigation by The City of London Police. As such the Government is unable to comment on the specifics of the case.
The FCA and PSR have recently written to financial services firms setting out their expectation that firms should determine whether any claims, or parts of claims, are a qualifying APP scam, on an individual basis.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations her Department has received from sending banks under the authorised push payment reimbursement arrangements in relation to (a) claims and (b) complaints by 79th Group investors; and what guidance UK Finance has provided to those banks on handling such claims.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.
All payment services providers, including banks, are required to comply with the Payment Systems Regulator’s authorised push payment (APP) scam reimbursement regime, which came into force on 7 October 2024. This requires firms to reimburse victims for qualifying APP scams which took place from 7 October 2024 and over the Faster Payments System up to the value of £85,000. For APP scams which took place before this, these may be eligible for reimbursement under the Contingent Reimbursement Model Code, which applied from May 2019 and was signed by the UK’s largest banks and building societies.
The 79th group are currently subject to an ongoing investigation by The City of London Police. As such the Government is unable to comment on the specifics of the case.
The FCA and PSR have recently written to financial services firms setting out their expectation that firms should determine whether any claims, or parts of claims, are a qualifying APP scam, on an individual basis.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations her Department has received from receiving banks under the authorised push payment reimbursement arrangements in relation to (a) claims and (b) complaints by 79th Group investors; and what guidance UK Finance has provided to those banks on handling such claims.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.
All payment services providers, including banks, are required to comply with the Payment Systems Regulator’s authorised push payment (APP) scam reimbursement regime, which came into force on 7 October 2024. This requires firms to reimburse victims for qualifying APP scams which took place from 7 October 2024 and over the Faster Payments System up to the value of £85,000. For APP scams which took place before this, these may be eligible for reimbursement under the Contingent Reimbursement Model Code, which applied from May 2019 and was signed by the UK’s largest banks and building societies.
The 79th group are currently subject to an ongoing investigation by The City of London Police. As such the Government is unable to comment on the specifics of the case.
The FCA and PSR have recently written to financial services firms setting out their expectation that firms should determine whether any claims, or parts of claims, are a qualifying APP scam, on an individual basis.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions her Department has had with UK Finance on proposed changes to the (a) role and (b) remit of the Financial Ombudsman Service; and what assessment her Department has made of the potential impact of those proposed changes on protections for (i) people in the 79th Group and (b) other vulnerable investors.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Treasury Ministers meet with a wide variety of organisations in the public and private sectors as part of the regular business of government. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the following link: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
The Government engaged a wide range of stakeholders as part of its review of the Financial Ombudsman Service (FOS), which was conducted between March and July 2025. The Government recently consulted on proposed reforms following the conclusion of the review, and the consultation closed on 8 October 2025. The Government is now reviewing responses, and will set out its proposed next steps in due course. The review’s findings and the consultation on proposed reforms can be found here: https://www.gov.uk/government/consultations/fs-sector-strategy-review-of-the-financial-ombudsman-service.
The Government’s proposed reforms will not undermine the important role of the FOS in providing consumers with a cost-free route to quickly and easily resolve disputes with financial services firms. The review concluded that the FOS’s role providing an impartial dispute resolution service within the financial services regulatory framework should be preserved, and that the fair and reasonable test remains appropriate for its position as an informal alternative to the courts.
The Government is proposing that the fair and reasonable test should be retained and adapted to align with the overall regulatory approach for financial services, so that where conduct complained of is in scope of FCA rules, a firm will be considered to have acted fairly and reasonably.
These reforms will improve the regulatory coherence between the FOS and the Financial Conduct Authority (FCA), to deliver a more consistent and predictable regulatory environment, which the Government believes will benefit both consumers and industry..
The 79th Group is subject to an ongoing investigation by The City of London Police. As such the Government is unable to comment on the specifics of the case. However, the FCA and PSR have recently written to financial services firms setting out their expectation that firms should determine whether any claims, or parts of claims, are a qualifying APP scam, on an individual basis.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with UK Finance on reforming of the role of the Financial Ombudsman Service.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Treasury Ministers meet with a wide variety of organisations in the public and private sectors as part of the regular business of government. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the following link: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
The Government engaged a wide range of stakeholders as part of its review of the Financial Ombudsman Service (FOS), which was conducted between March and July 2025. The Government recently consulted on proposed reforms following the conclusion of the review, and the consultation closed on 8 October 2025. The Government is now reviewing responses, and will set out its proposed next steps in due course. The review’s findings and the consultation on proposed reforms can be found here: https://www.gov.uk/government/consultations/fs-sector-strategy-review-of-the-financial-ombudsman-service.
The Government’s proposed reforms will not undermine the important role of the FOS in providing consumers with a cost-free route to quickly and easily resolve disputes with financial services firms. The review concluded that the FOS’s role providing an impartial dispute resolution service within the financial services regulatory framework should be preserved, and that the fair and reasonable test remains appropriate for its position as an informal alternative to the courts.
The Government is proposing that the fair and reasonable test should be retained and adapted to align with the overall regulatory approach for financial services, so that where conduct complained of is in scope of FCA rules, a firm will be considered to have acted fairly and reasonably.
These reforms will improve the regulatory coherence between the FOS and the Financial Conduct Authority (FCA), to deliver a more consistent and predictable regulatory environment, which the Government believes will benefit both consumers and industry..
The 79th Group is subject to an ongoing investigation by The City of London Police. As such the Government is unable to comment on the specifics of the case. However, the FCA and PSR have recently written to financial services firms setting out their expectation that firms should determine whether any claims, or parts of claims, are a qualifying APP scam, on an individual basis.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that investors in 79th Group receive adequate compensation.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
As an important point of principle, the Government does not step in to pay compensation in respect of failed financial services firms that fall outside of the Financial Services Compensation Scheme (FSCS). Doing so would create the wrong set of incentives for individuals and an unnecessary burden on the taxpayer. The Government does not ordinarily step in to pay compensation to consumers in relation to allegations of fraud, investment losses, mis-selling or mis-buying of investments.
However, in some cases of fraud, individuals may be able to seek reimbursement from their bank. The Payment Systems Regulator (PSR) is the independent regulator with responsibility for Authorised Push Payment (APP) fraud reimbursement. The PSR’s mandatory reimbursement regime, for APP scams taking place over the Faster Payment system, came into force on 7 October 2024 and covers transactions occurring on or after that date. It requires payment service providers to reimburse victims of APP scam losses up to the value of £85,000. The PSR has committed to commission an independent post implementation review of its policy after 12 months of the policy being in force.
Transactions that occurred before 7 October 2024, may be governed by the Contingent Reimbursement Model (CRM), a voluntary code signed by the UK’s largest banks and building societies that came into force in May 2019. However, it is important to note that not all banks or building societies are party to the CRM code. The CRM code is overseen by the Lending Standards Board and more information can be found on their website.
Where a reimbursement claim is unsuccessful, victims may have access to recourse through the Financial Ombudsman Service (FOS). This includes fraud, providing the activity is within the FOS’s jurisdiction, which is set by the FCA. Any criminal investigation would be a matter for the police. Unfortunately, the Government is unable to intervene in individual cases, but I would encourage victims to continue to engage with their banks directly in order to seek a timely resolution to this matter.
However, it is important to prevent fraud from happening in the first place. HM Treasury is working with colleagues in the Home Office as they develop a new, expanded Fraud Strategy. This will be published in due course as part of the Government’s Plan for Change and in line with our manifesto commitments.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of Financial Conduct Authority support for victims of financial fraud in the context of the insolvency of 79th Group.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
As an important point of principle, the Government does not step in to pay compensation in respect of failed financial services firms that fall outside of the Financial Services Compensation Scheme (FSCS). Doing so would create the wrong set of incentives for individuals and an unnecessary burden on the taxpayer. The Government does not ordinarily step in to pay compensation to consumers in relation to allegations of fraud, investment losses, mis-selling or mis-buying of investments.
However, in some cases of fraud, individuals may be able to seek reimbursement from their bank. The Payment Systems Regulator (PSR) is the independent regulator with responsibility for Authorised Push Payment (APP) fraud reimbursement. The PSR’s mandatory reimbursement regime, for APP scams taking place over the Faster Payment system, came into force on 7 October 2024 and covers transactions occurring on or after that date. It requires payment service providers to reimburse victims of APP scam losses up to the value of £85,000. The PSR has committed to commission an independent post implementation review of its policy after 12 months of the policy being in force.
Transactions that occurred before 7 October 2024, may be governed by the Contingent Reimbursement Model (CRM), a voluntary code signed by the UK’s largest banks and building societies that came into force in May 2019. However, it is important to note that not all banks or building societies are party to the CRM code. The CRM code is overseen by the Lending Standards Board and more information can be found on their website.
Where a reimbursement claim is unsuccessful, victims may have access to recourse through the Financial Ombudsman Service (FOS). This includes fraud, providing the activity is within the FOS’s jurisdiction, which is set by the FCA. Any criminal investigation would be a matter for the police. Unfortunately, the Government is unable to intervene in individual cases, but I would encourage victims to continue to engage with their banks directly in order to seek a timely resolution to this matter.
However, it is important to prevent fraud from happening in the first place. HM Treasury is working with colleagues in the Home Office as they develop a new, expanded Fraud Strategy. This will be published in due course as part of the Government’s Plan for Change and in line with our manifesto commitments.
Asked by: John Whittingdale (Conservative - Maldon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the Authorised Push Payment framework in tackling financial fraud.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
As an important point of principle, the Government does not step in to pay compensation in respect of failed financial services firms that fall outside of the Financial Services Compensation Scheme (FSCS). Doing so would create the wrong set of incentives for individuals and an unnecessary burden on the taxpayer. The Government does not ordinarily step in to pay compensation to consumers in relation to allegations of fraud, investment losses, mis-selling or mis-buying of investments.
However, in some cases of fraud, individuals may be able to seek reimbursement from their bank. The Payment Systems Regulator (PSR) is the independent regulator with responsibility for Authorised Push Payment (APP) fraud reimbursement. The PSR’s mandatory reimbursement regime, for APP scams taking place over the Faster Payment system, came into force on 7 October 2024 and covers transactions occurring on or after that date. It requires payment service providers to reimburse victims of APP scam losses up to the value of £85,000. The PSR has committed to commission an independent post implementation review of its policy after 12 months of the policy being in force.
Transactions that occurred before 7 October 2024, may be governed by the Contingent Reimbursement Model (CRM), a voluntary code signed by the UK’s largest banks and building societies that came into force in May 2019. However, it is important to note that not all banks or building societies are party to the CRM code. The CRM code is overseen by the Lending Standards Board and more information can be found on their website.
Where a reimbursement claim is unsuccessful, victims may have access to recourse through the Financial Ombudsman Service (FOS). This includes fraud, providing the activity is within the FOS’s jurisdiction, which is set by the FCA. Any criminal investigation would be a matter for the police. Unfortunately, the Government is unable to intervene in individual cases, but I would encourage victims to continue to engage with their banks directly in order to seek a timely resolution to this matter.
However, it is important to prevent fraud from happening in the first place. HM Treasury is working with colleagues in the Home Office as they develop a new, expanded Fraud Strategy. This will be published in due course as part of the Government’s Plan for Change and in line with our manifesto commitments.